According to recent reports, the leading cryptocurrency exchange, Binance revealed its most recent proof-of-reserves (PoR) on August 1, providing insights regarding its crypto reserves.
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Public Attention
The document disclosed the transfer that took place in USDC deposits during the downfall of Silvergate, which drew the public’s attention and ended up being an issue of discussion on X.
Binance is in a Solid Monetary Shape
As per the reports, Binance appears to be in solid monetary shape. It implies that Binance has ample cryptocurrency and cash to reimburse the user’s money. The ratio of the company’s net holdings with its clients’ net holdings is greater than 100% throughout every asset. However, its USDC reserve shifts after the Silvergate crash and the depeg of the stablecoin were the top on the conversation. The PoR indicates Binance’s USDC balance plummeting from $3.4 billion on March 1st to $23.9 million by May 1st.
What On-chain Data Shows
According to On-chain findings, promptly following the Silvergate collapse on March 12, Binance started converting its customers’ USDC holdings into Bitcoin as well as Ether, while still holding a considerable quantity of USDC in its own reserves.
According to Aleksandar Djakovic, a researcher working for on-chain data, Binance bought around 100,000 BTC and 550,000 ETH starting from March 12 to May 1, totaling about $3.5 billion, the same amount as their USDC surplused.
Binance Affected by Debanking
During an interview in December last year with Bloomberg at the Web Summit summit in Lisbon, the Chinese-Canadian CEO was reported to be thinking about acquiring banks as a way to mend the divide between traditional banking and digital money.
However, in another interview in May, the Binance CEO stated that his company has no plans to purchase any banks, amid the concern of numerous businesses being debanked, including Binance’s own operation in Australia, just after the bankruptcy of many former major lending institutions of crypto-related businesses such as Silvergate, Silicon Valley Bank, and Signature Bank.
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