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MediaBinance Achieves Historic $100 Billion in User Assets
Binance cryptocurrency exchange has announced that its assets under custody have exceeded $100 billion as of March 18. This achievement represents a significant jump from the $40 billion available in the year. Binance attributes this growth to a combination of factors, including a surge in digital asset prices and the exchange’s commitment to holding user funds at a 1:1:1 ratio with further assets. One of the key players in this assurance is the proof-of-reserves (POR) system of Binance, which makes it possible to verify 100% collateralization ratios in all major cryptocurrencies and altcoins.
Even though facing actions from the U.S. Department of Justice against the exchange and its co-founder Changpeng Zhao, Binance is a company that would not easily go away. The exchange has even underlined the crucial role of its proof-of-reserves system in illustrating its ability to fulfill customer requests with regard to withdrawal. This method was launched in November 2022 after FTX went bankrupt, and in February 2023, it was updated to improve audit efficiency and transparency.
Binance CEO Avows on Debt-Free Nature of the Exchange
Proof-of-reserves by the exchange is one of the most significant elements of the exchange’s transparency initiatives, revealing its financial strength and protecting customer assets. However, even though POR has its positive sides, experts point out the fact that it presents just the part of the picture in question, whereby details about the exchange’s liabilities and net equities are left out. Nevertheless, the CEO of Binance, Richard Teng, has said the exchange has a “debt-free” capital structure, which strengthens trust in the financial stability of the venue.
The panel also discussed worries about the precision of user funds calculators that blockchain market intelligence firms deliver. It clarified that these figures are helpful, though they may not completely articulate the real amount of user funds on Binance. This difference is due to the fact that some assets included in these computations are, in reality, the exchanges operational funds. For the most precise information on user asset holdings, Binance suggests seeing its monthly POR audits.
High-Performing Crypto Fund Separates from Parent Company
In an earlier report, Coingape reported that Binance announced that it would sever ties with its venture capital arm, Binance Labs. Despite Binance Labs achieving an average of over 14 times return on its investments, with its portfolio now valued at $10 billion, the separation aims to clarify the operational independence of the two entities. Binance Labs, while licensed to use the Binance trademark, maintains no other relationship with the Binance cryptocurrency exchange or any affiliated businesses.
Read Also: Worldcoin Addresses Legal Concerns Amid Spanish Operational Ban
The post Binance Achieves Historic $100 Billion in User Assets appeared first on CoinGape.
Read More
Binance Achieves Historic $100 Billion in User Assets
Binance cryptocurrency exchange has announced that its assets under custody have exceeded $100 billion as of March 18. This achievement represents a significant jump from the $40 billion available in the year. Binance attributes this growth to a combination of factors, including a surge in digital asset prices and the exchange’s commitment to holding user funds at a 1:1:1 ratio with further assets. One of the key players in this assurance is the proof-of-reserves (POR) system of Binance, which makes it possible to verify 100% collateralization ratios in all major cryptocurrencies and altcoins.
Even though facing actions from the U.S. Department of Justice against the exchange and its co-founder Changpeng Zhao, Binance is a company that would not easily go away. The exchange has even underlined the crucial role of its proof-of-reserves system in illustrating its ability to fulfill customer requests with regard to withdrawal. This method was launched in November 2022 after FTX went bankrupt, and in February 2023, it was updated to improve audit efficiency and transparency.
Binance CEO Avows on Debt-Free Nature of the Exchange
Proof-of-reserves by the exchange is one of the most significant elements of the exchange’s transparency initiatives, revealing its financial strength and protecting customer assets. However, even though POR has its positive sides, experts point out the fact that it presents just the part of the picture in question, whereby details about the exchange’s liabilities and net equities are left out. Nevertheless, the CEO of Binance, Richard Teng, has said the exchange has a “debt-free” capital structure, which strengthens trust in the financial stability of the venue.
The panel also discussed worries about the precision of user funds calculators that blockchain market intelligence firms deliver. It clarified that these figures are helpful, though they may not completely articulate the real amount of user funds on Binance. This difference is due to the fact that some assets included in these computations are, in reality, the exchanges operational funds. For the most precise information on user asset holdings, Binance suggests seeing its monthly POR audits.
High-Performing Crypto Fund Separates from Parent Company
In an earlier report, Coingape reported that Binance announced that it would sever ties with its venture capital arm, Binance Labs. Despite Binance Labs achieving an average of over 14 times return on its investments, with its portfolio now valued at $10 billion, the separation aims to clarify the operational independence of the two entities. Binance Labs, while licensed to use the Binance trademark, maintains no other relationship with the Binance cryptocurrency exchange or any affiliated businesses.
Read Also: Worldcoin Addresses Legal Concerns Amid Spanish Operational Ban
The post Binance Achieves Historic $100 Billion in User Assets appeared first on CoinGape.
Read More