CryptoQuant verifies Binance's reserves, reports no ‘FTX-like’ behavior
Blockchain analytics provider CryptoQuant has released a report analyzing the recently released proof of reserves audit of the world’s largest crypto exchange, Binance.
Centralized exchanges have been cast into the spotlight over the past month following the collapse of FTX, none more so than Binance which has been scrambling to reassure customers and investors that it has sufficient reserves and is fully backed.
A report by CryptoQuant released on Dec. 14 says its analysis confirms that Binance reserves are accounted for.
Earlier this month, Binance released its proof-of-reserves report but it was criticized as being an “Agreed-Upon-Procedure” and not a full audit.
Additionally, the report didn’t address the effectiveness of internal financial controls, according to the former chief of the Securities Exchange Commission's Office of Internet Enforcement, John Reed Stark.
But CryptoQuant has backed the findings by audit firm Mazars stating that liabilities reported by Binance are very close to its estimation of 99%.
What does Binance's Proof of Reserve (PoR) report tell us from an on-chain perspective?A short thread @binance @cz_binance pic.twitter.com/2vAoOmFb63
The analytics firm added that on-chain data suggests Binance’s ETH and stablecoin reserves are “not showing 'FTX-like' behavior at this point.”
“Additionally, Binance has an acceptable ‘Clean Reserve,’ which means its own token, BNB, is still a low proportion of its total assets,” it reported.
According to data provider Nansen, around 10% of Binance reserves are held in its token. Binance currently holds $60.4 billion in total assets in their publicly disclosed addresses, $6.2 billion of that total was BNB, it reported.
Related:Crypto community members discuss bank run
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