- Binance’s achievement of holding over $100 billion in user assets, as verified by its proof-of-reserves (POR) mechanism, underscores the exchange’s commitment to transparency and accountability.
- By regularly conducting POR snapshots and asserting a 1:1 ratio of user assets plus additional reserves, Binance aims to instill trust and confidence among its user base.
The amount of assets that popular cryptocurrency exchange Binance holds for its members exceeds $100 billion.
With the use of its proof-of-reserves (POR) mechanism, which verifies the holding of 31 supported digital assets, Binance asserts that it holds all user assets at a 1:1 ratio plus additional reserves. Although helpful, these transparency initiatives by cryptocurrency exchanges have drawn criticism since they exclude information necessary to evaluate a company’s financial standing, such as audited fiat reserves, customer and corporate obligations, and other data.
As of early March, Binance’s most recent POR snapshot revealed that the reserves were getting close to that amount. The firm said in a blog post on Monday that the milestone has now been reached for the first time since Binance started reporting its user asset holdings in November 2022. This month’s significant inflows and following rise in cryptocurrency prices are the reasons for this.
DeFiLlama data shows that over the course of the last year, the entire value locked on Binance’s centralized exchange has almost doubled, rising from roughly $67 billion to $115 billion.
As of early March, Binance’s most recent POR snapshot revealed that the reserves were getting close to that amount. The firm said in a blog post on Monday that the milestone has now been reached for the first time since Binance started reporting its user asset holdings in November 2022. This month’s significant inflows and following rise in cryptocurrency prices are the reasons for this.
DeFiLlama data shows that over the course of the last year, the entire value locked on Binance’s centralized exchange has almost doubled, rising from roughly $67 billion to $115 billion.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
