Binance Stored Users’ Fund with B-Tokens Collateral by ‘Mistake’: Report

Binance, the world’s biggest cryptocurrency exchange by trading volume,
admitted to storing customers’ funds and the collateral of some of
the tokens it issues by “mistake.”

According to Bloomberg, Binance issued 94 Binance-peg tokens, also
called ‘B-Tokens’. However, almost half of the reserves of these tokens are kept together with
customers’ funds in a cold wallet called “Binance 8,” the outlet said. Currently, the wallet’s tokens’ reserve
outnumbers the volume of B-Tokens the leading crypto exchange has
issued, Bloomberg added.

Furthermore, the outlet said its calculation shows that over $539 million in
B-Tokens have been affected as a result of this action. However, a spokesperson who spoke to the news platform assured the public that users’ funds are backed 1:1 and added that
the exchange is taking steps to rectify the situation.

Watch the recent FMLS22 on reimagining the crypto structure.

The new development at Binance comes as centralized exchanges (CEXs) face greater scrutiny
following the collapse in November of Bahamas-based cryptocurrency exchange
Cryptocurrency Exchange

A cryptocurrency exchange is an online platform that supports the exchange of various currencies for a cryptocurrency or digital asset.Comparable to a generalized financial exchange, a crypto exchange’s core function is to permit and encourage the buying and selling of cryptos.This is accomplished by producing a stable trading environment suitable for traders nested through different locations around the world. Sometimes a crypto exchange may be referred to as a digital currency exchange (DCE) f

A cryptocurrency exchange is an online platform that supports the exchange of various currencies for a cryptocurrency or digital asset.Comparable to a generalized financial exchange, a crypto exchange’s core function is to permit and encourage the buying and selling of cryptos.This is accomplished by producing a stable trading environment suitable for traders nested through different locations around the world. Sometimes a crypto exchange may be referred to as a digital currency exchange (DCE) f
Read this Term, FTX,
which allegedly released customers’ funds to its sister trading firm, Alameda Research.
FTX is still undergoing bankruptcy proceedings in the United States.

Over a month ago, the global financial auditor Mazars in a report noted that
Binance’s reserves for Bitcoin was over-collaterized, standing at 101%, as
against the regular 100% or 1:1 asset-to-reserve ratio. Binance first launched its
proof-of-reserves (PoR) for BTC in November last year.

Away from Binance, in a bid to assure their users of their financial health, other
cryptocurrency exchanges have announced PoRs for their digital asset
holdings. Last week, Seychelles-based crypto exchange OKX released its PoR
which shows that the platform is also over-collaterized, with about $7.5
billion in digital asset holdings.

Finance Magnates reports that while OKX’s users hold a total of 117,682
BTC, 1,178,993 ETH and 2,955,696,824 USDT, the crypto exchange’s reserve ratio
stood at 105% for the first two digital assets and 101% for the stablecoin
Stablecoin

Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including

Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including
Read this Term.

Meanwhile, Singapore-based Crypto.com and another crypto
exchange Biget recently
launched their PoRs. The asset-reserve ratios of the major cryptocurrencies on
Crypto.com include BTC (102%), ETH (101%), USDC (102%), USDT (106%), USDT
(106%) and XRP (101%). Others are Dogecoin (101%), Shiba Inu (102%), Link
(101%) and Mana (102%).

Binance, the world’s biggest cryptocurrency exchange by trading volume,
admitted to storing customers’ funds and the collateral of some of
the tokens it issues by “mistake.”

According to Bloomberg, Binance issued 94 Binance-peg tokens, also
called ‘B-Tokens’. However, almost half of the reserves of these tokens are kept together with
customers’ funds in a cold wallet called “Binance 8,” the outlet said. Currently, the wallet’s tokens’ reserve
outnumbers the volume of B-Tokens the leading crypto exchange has
issued, Bloomberg added.

Furthermore, the outlet said its calculation shows that over $539 million in
B-Tokens have been affected as a result of this action. However, a spokesperson who spoke to the news platform assured the public that users’ funds are backed 1:1 and added that
the exchange is taking steps to rectify the situation.

Watch the recent FMLS22 on reimagining the crypto structure.

The new development at Binance comes as centralized exchanges (CEXs) face greater scrutiny
following the collapse in November of Bahamas-based cryptocurrency exchange
Cryptocurrency Exchange

A cryptocurrency exchange is an online platform that supports the exchange of various currencies for a cryptocurrency or digital asset.Comparable to a generalized financial exchange, a crypto exchange’s core function is to permit and encourage the buying and selling of cryptos.This is accomplished by producing a stable trading environment suitable for traders nested through different locations around the world. Sometimes a crypto exchange may be referred to as a digital currency exchange (DCE) f

A cryptocurrency exchange is an online platform that supports the exchange of various currencies for a cryptocurrency or digital asset.Comparable to a generalized financial exchange, a crypto exchange’s core function is to permit and encourage the buying and selling of cryptos.This is accomplished by producing a stable trading environment suitable for traders nested through different locations around the world. Sometimes a crypto exchange may be referred to as a digital currency exchange (DCE) f
Read this Term, FTX,
which allegedly released customers’ funds to its sister trading firm, Alameda Research.
FTX is still undergoing bankruptcy proceedings in the United States.

Over a month ago, the global financial auditor Mazars in a report noted that
Binance’s reserves for Bitcoin was over-collaterized, standing at 101%, as
against the regular 100% or 1:1 asset-to-reserve ratio. Binance first launched its
proof-of-reserves (PoR) for BTC in November last year.

Away from Binance, in a bid to assure their users of their financial health, other
cryptocurrency exchanges have announced PoRs for their digital asset
holdings. Last week, Seychelles-based crypto exchange OKX released its PoR
which shows that the platform is also over-collaterized, with about $7.5
billion in digital asset holdings.

Finance Magnates reports that while OKX’s users hold a total of 117,682
BTC, 1,178,993 ETH and 2,955,696,824 USDT, the crypto exchange’s reserve ratio
stood at 105% for the first two digital assets and 101% for the stablecoin
Stablecoin

Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including

Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including
Read this Term.

Meanwhile, Singapore-based Crypto.com and another crypto
exchange Biget recently
launched their PoRs. The asset-reserve ratios of the major cryptocurrencies on
Crypto.com include BTC (102%), ETH (101%), USDC (102%), USDT (106%), USDT
(106%) and XRP (101%). Others are Dogecoin (101%), Shiba Inu (102%), Link
(101%) and Mana (102%).