[ad_1]
As one of the leading crypto exchanges, Binance has tried to demonstrate transparency in its operations, especially the security of its customers’ funds. This led to the publication of its Proof of Availability (PoR) statements. However, the collapse of some companies such as Celsius Network, FTX, and others have caused fear and skepticism about crypto exchanges and platforms.
Investors mainly lost faith in centralized platforms. Hence, most CEXs publish proof of balance assets to signify the safety of users’ funds.
Difference in BTC holdings reported by Binance
Some revelations point to under-reporting of Binance PoR assets. For example, according to the on-chain data provider glass tip, the crypto exchange balance shows a total Bitcoin holding of nearly 584,600 BTC. But the exchange said it has about 359,300 BTC in its Proof of Reserve (PoR).
This discrepancy of 200,000 BTC, Glassnode points out, shows an under-reporting of its BTC holdings. The difference at current market prices is approximately $3.4 billion.
Ethereum balance is reported by Binance as its proof-of-balance and on-chain data provider, similar to this. Both reports showed about 4.65 million ETH in Binance reserves.
Also, data from Glassnode showed that exchange balances saw increased volatility through December. This happened because of the FUD surrounding finance as the exchange faced a situation similar to FTX. FUD has prompted more withdrawals from crypto exchanges. 
Ethereum balance vs self-reported balance
Binance Records Massive Outflows
The exchange has seen more exits with growing tension regarding the PoR report. In addition, according to on-chain data, Finance Bitcoin deposit and withdrawal volume revealed higher BTC withdrawals in the past few days.
The site recently recorded significant outflows of 57,300 BTC. However, Ether’s flows are more stable in finance than Bitcoin’s.
Data on Ethereum deposit and withdrawal volume shows a massive daily outflow of 456,700 ETH. Notably, most investors preferred a self-regulatory approach after the collapse of the FTX exchange.
Also, the exchange recorded a significant volume in consolidated outflows of stablecoins. Roughly $3.2 billion worth of stablecoins left the exchange in the past 30 days. Because coins were the centerpiece of Binance FUD. Some of the stablecoins withdrawn include BUSD, USDT, USDC and DAI.
However, Binance’s CEO, Changpeng Zhao (CZ) took it Twitter CZ assured users of the security of their crypto assets to reassure customers about their financial security and withdrawals. He noted that “stress tests” contribute to building trust in their users and the crypto community as a whole.
[ad_2]