A further proof of Binance’s strength? The platform has just completed the audit of its reserves, and the expertise reveals that the reserves in Bitcoin (BTC) of Binance are slightly larger than what had been announced. This is reassuring for users who feared another FTX-like scenario.
Binance’s Bitcoin reserves examined
The major auditing firm Mazars has audited Binance’s Bitcoin reserves. In its report, it confirms that the number of BTC held by the platform is higher than announced: it is over-collateralised at 101%. There are 575,742 bitcoins on Binance, or $9.6 billion at the current price.
The platform has also confirmed that it will conduct further audits of other assets held, including Ether (ETH). As Mazars points out, this is a review of Binance’s BTC reserves, not a global review:
We are not expressing an opinion or an assurance conclusion. If we had performed additional procedures, we might have noted other items that would have been reported. “
The disproportionate nature of Binance’s reserves
As a reminder, Binance already published “evidence of reserves” a few weeks ago, in order to reassure users scalded by the fall of FTX. The platform claims it has substantial reserves: more than $63 billion in cryptocurrencies according to data recently shared by Nansen:
This table shows that Binance has 3 times the crypto holdings of the other 11 exchanges combined
Binance $63.3B
OKX $6.2B
Cryptocom $3.41B
Huobi $3.12B
KuCoin $2.45B
And othersExchange balances are updated hourly here ➡️ https://t.co/2OSHH7Ngf7 pic.twitter.com/U9sMjp3CL3
– Nansen (@nansen_ai) December 6, 2022
Binance’s reserves appear disproportionate: they are three times the reserves of the other 11 exchanges listed. This shows the weight of the company, which has probably reinforced its hegemony since the FTX affair.
However, the resulting panic has led to greater transparency for the other major players. The latter have published reserve evidence in recent weeks to prove that they have the necessary funds to meet their clients’ transactions. As a reminder, FTX had quietly diverted client funds to its sister company, Alameda Research, which precipitated the giant’s downfall.
