Binance’s Proof of Reserves
Binance, the largest crypto exchange, recently released its latest Proof of Reserves (PoR) report. This report shows how much crypto they hold for their users.
Shiba Inu Holdings
The report reveals that Binance holds over 65 trillion Shiba Inu (SHIB) tokens. This means that for every SHIB that users have on Binance, the exchange holds a little more than 1 SHIB in reserve.
Value of Holdings
At the time of writing, the value of Binance’s SHIB holdings is over $1.8 billion. This is a bit less than what they held in February, suggesting that some investors may have sold some of their SHIB.
Transparency and Accountability
Binance’s PoR reports are a way for them to be open and honest with their users. They show that Binance has enough crypto to cover all of their users’ deposits.
100% Backed Assets
Binance uses a strategy where they keep enough crypto in reserve to cover all of their users’ assets, plus a little extra. This means that Binance’s net balance is always higher than its customers’ net balance.
Emergency Funds
Binance also has emergency funds in case of extreme market conditions. This helps them maintain liquidity and reduce losses from market volatility.
Zero Debt
Binance has no debt in its capital structure. They use a Merkle Tree feature that allows users to verify that their assets are backed 100%.
