Binance, the world’s largest and most popular digital currency exchange, announced about a new program that will provide all current and future cryptocurrency investors with proof of their current holdings in BTC and Ethereum
The goal of the program is to shed light on the issue of transparency and show that the company has nothing to do with the FTX exchange, which launched just three years ago in 2019, but ran into financial problems in the fall, followed by the scandalous collapse of the trading floor. . Initially, Binance planned to buy the crypto exchange, but then decided that the problems faced by FTX were too serious for it, and in the end, it, fortunately, abandoned the deal.
In any case, it looks like Binance is learning from the FTX fiasco and is trying to not only separate itself from the now-deceased company, but also show people why it and crypto in general can still be trusted.
Right now, the company has made it clear how much BTC and ETH it has in backup storage, although it doesn’t stop there. The company released a statement that it has even more liquidity and information on these reserves will be made available in the coming weeks.
The statement says:
“When we talk about confirmation of reserves, we specifically mean the assets that we hold for users. This means that we are demonstrating evidence and evidence that Binance has funds that cover all of our users’ assets 1:1, as well as some reserves.”
At the time of this writing, Binance has posted a screenshot showing that it holds over 582,000 BTC. Right now, the exchange has just over 572,000 BTC held by individual traders. From this information alone, we can assume that Binance has enough money to cover all the wallets and potential losses (if they occur), while still having some cryptocurrency left.
At first glance, this may seem like a positive thing, but there are a few traders who feel that this is not enough. Binance anticipated this attitude and presented the steps in a recent press release discussing how traders can verify this data for themselves and ensure that their holdings are privately reported.
The release says:
“For those who want to go one step further and test their funds themselves, they can copy the source code into a Python app and do the cross-references themselves”
FTX has long been considered the golden child of the digital currency world, and its founder and CEO, Sam Bankman-Fried, has been hailed by many as a genius for his ability to potentially take a major company this far in just three years.
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