In the face of recent fear, uncertainty and doubt (FUD) campaigns surrounding its operations, Binance, the largest Bitcoin (BTC) and cryptocurrency exchange by trading volume, has presented a test of reserve updates.
The move is aimed at responding to criticism from users and analysts who question the transparency of the exchange’s operational management and custody of digital assets.
Figures published through CoinMarketCap (CMC), a platform owned by Binance, show that: The exchange dominates the market with $156 billion in reservesThis is more than all other major exchanges combined.
This financial position puts the company significantly ahead of other competing exchanges, outperforming the second-place reserve by almost five times.
The platform behind it is OKX and Bybit report $31.29 billion and $14.17 billion each. Other market participants such as Gate, HTX, Bitget, MEXC, and KuCoin operate at lower custody levels and hold reserves ranging from $2.16 billion to $7.86 billion, as shown below.
Composition of reserves on Binance and other exchanges
Distributing these funds internally allows us to comply with the exchange’s financial policies. The CoinMarketCap report details the following regarding Binance: Bitcoin and derivatives account for 32% of the capital, which is approximately $49.84 billion..
The remaining balance is primarily split between dollar-pegged assets and its own tokens. Stablecoins account for 30.50% of the reserves, with an estimated value of $47 billion, while 21.98% of the reserves consist of tokens issued by the exchange itself.
Binance Technical Outlook and Security Fund
As reported by CriptoNoticias, the disclosure of the reserves came amid a wave of complaints from various market participants and users of the platform accusing the platform of alleged price manipulation.
However, external analyzes such as data provider CryptoQuant show that the organization is “not showing any signs of stress” even during the insurgency.
According to its monitoring, reserves remain close to 659,000 BTC, net flows remain normal, and reserve movement remains at just 0.6%.
As part of its restructuring of guarantees to users, the company has made changes to its Safe Asset Fund (SAFU) for users. The objective is to consolidate a $1 billion reserve entirely denominated in Bitcoin.. This technical operation recorded an initial movement of 1,315 BTC worth $100 million towards the fund address.
The market will watch to see whether these measures are enough to dispel doubts about the platform’s integrity, or whether questions about the platform’s conduct remain.
(Tag Translation)Binance
