Binance’s Updated Proof-of-Reserve Report Shows Massive Shiba Inu Holdings
Binance, the largest cryptocurrency exchange by trading volume, has released its latest Proof-of-Reserve (PoR) report, revealing a substantial holding of Shiba Inu (SHIB) tokens. According to the report, published for March 2024, Binance holds 67.67 trillion SHIB tokens, demonstrating the exchange’s capacity to meet customer demands.
Binance’s Shiba Inu Reserve Exceeds User Deposits
The report highlights that Binance’s reserve of Shiba Inu exceeds its users’ deposits by 3.59%. While the net balance of customer deposits stood at 65.32 trillion SHIB tokens, Binance’s reserve was 67.67 trillion SHIB. This indicates that Binance collateralizes Shiba Inu at a ratio of 103.60%, providing more tokens than necessary to cover customer deposits.
With Shiba Inu trading at $0.00002894, the total value of Binance’s Shiba Inu reserve is approximately $1.96 billion, while customer deposits are worth around $1.89 billion. Although these figures represent a slight decrease from January’s report, they still demonstrate a robust level of reserve coverage.
Binance’s Proof-of-Reserve System
In response to the collapse of FTX, Binance and other major exchanges began publishing monthly Proof-of-Reserve reports to assure customers that their assets are fully backed. Binance introduced Shiba Inu to its PoR system in February 2023, contributing to the transparency of the exchange’s asset holdings.
As of the latest report, Binance’s PoR system covers 31 of the most widely adopted cryptocurrencies on the platform, including Bitcoin and Ethereum. This move aligns with Binance’s efforts to build customer trust through greater transparency.
Bitcoin and Ethereum Holdings
In addition to Shiba Inu, the PoR report also provides insights into Binance’s Bitcoin and Ethereum holdings. According to the report, the collateralization ratio for Bitcoin and Ethereum stood at 104.46% and 103.58%, respectively. This means that Binance holds more Bitcoin and Ethereum than its users have deposited, indicating strong reserve management.
For Bitcoin, Binance customers hold a total of 568,788.919 BTC, worth approximately $41.09 billion. The exchange’s Bitcoin reserve is 594,136.021 BTC, with a value of about $42.92 billion. Similarly, Binance customers hold 4,446,480.486 ETH, valued at roughly $16.04 billion, while the exchange’s Ethereum reserve is 4,605,595.896 ETH, valued at around $16.61 billion.
New KYC Measures and Their Impact
Binance is set to implement a new know-your-customer (KYC) measure by April 20, which could affect its crypto holdings. Under the new policy, users who have not completed the KYC requirements will lose access to their sub-accounts on the platform. This measure is designed to enhance security and compliance, further aligning with Binance’s efforts to build trust and maintain regulatory compliance.
Conclusion
Binance’s latest Proof-of-Reserve report underscores the exchange’s commitment to maintaining robust reserves for major cryptocurrencies, including Shiba Inu, Bitcoin, and Ethereum. Despite slight fluctuations in the collateralization ratios, the report demonstrates that Binance holds more assets than required to cover customer deposits. The implementation of new KYC measures indicates Binance’s continued efforts to ensure compliance and improve platform security.
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