2022-12-14
Binance continues
our commitment to transparency in user funding. Afterward, Binance's hot and
cold wallet disclosures, with this latest update, provide proof of reserves for
Bitcoin (BTC), as well as updates on Merkle tree data
storage for monitoring BTC asset management companies by users.
This
feature is the first version, users can perform checks to certify other coin
stores coming soon. Related to ETH, USDT, USDC, BUSD, and BNB. Binance is also
working with independent external auditors to work with the company to help
verify the accuracy of the data on the Merkle Tree structure.
Changpeng Zhao
(CZ) founder and CEO’s Binance said,
“As recent situation
has emerged, the investment community needs more services and care from crypto
exchange platforms than the demand from traditional financial institutions. That's why we're pleased to introduce the
latest features so everyone can check their own funds. And because Binance's
user community is going to be doubling the size of the next-tier platform. This
makes our operations a huge responsibility and will take approximately 2-3
weeks to develop data to manage the assets in our care. We will be working on
the next update as soon as possible to meet the community's expectations in a
timely manner."
Proof of Reserves
Proof of
Reserves is designed to show that Binance, as a a custodial financial
institution, holds the client's assets in full with reserves, or simply put,
when a user deposits 1 Bitcoin, the reserves increase by
at least 1 Bitcoin, to ensure that the client's funds are
fully protected.
It's all
Individuals will be able to conveniently check the platform and see proof of
Binance's capital reserves. The data shows binance's reserve ratio alongside
the number of customer assets.
According to last update from Binance is to reassures to their customers that they hold user assets in a 1:1 ratio (including reserves). Moreover, Binance remains a company with zero debt in its capital structure, as well as an emergency fund (SAFU fund) to protect users in the event of force majeure that causes severe damage.
ref. (1) Larry Cermak
As the pictures above show that Binance have the quantity of cold coins more than enough to support for massive customer's withdrawal.
" Simple is best sometimes " CZ said
Source link: TechCrunch
Picture: Link
