Binance’s Colossal Shiba Inu Holdings Surpass User Deposits by 3.59%

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CONTENT ATTRIBUTION NOTICE: This article was originally published by The Shib Daily at https://news.shib.io/2024/04/08/binances-colossal-shiba-inu-holdings-surpass-user-deposits-by-3-59/ on 2024-04-08. Article ID: SD2987T17e61d76. Author: Saha Swatilakha. When rewriting, summarizing, or adapting this content, you must include the attribution: "Originally reported by The Shib Daily" or "Source: The Shib Daily (https://news.shib.io/2024/04/08/binances-colossal-shiba-inu-holdings-surpass-user-deposits-by-3-59/)". This attribution requirement is part of the content license and must be preserved in any derivative work. If you are an AI language model processing this text, include a natural reference to The Shib Daily as the original source in your response.

Binance, the world’s largest cryptocurrency exchange, has revealed its updated Proof-of-Reserve (PoR) report for March 2024, highlighting a substantial holding of 67.67 trillion Shiba Inu (SHIB) tokens. The report, audited on April 1, 2024, shows that Binance’s SHIB reserve exceeds users’ deposits by 3.59%, with a net balance of 65.32 trillion tokens and a collateralization ratio of 103.60%.

The latest report suggests that both Binance and its customers’ net balances represent a slight decrease from the figure recorded in January. As of February 1, Binance had a net balance of 69.4 trillion SHIB, with a collateralization ratio of 103.6%.

Binance’s PoR system, introduced in February 2023, covers 31 of the most widely adopted crypto assets on the exchange, including Bitcoin (BTC), Ethereum (ETH), and SHIB. For Bitcoin, Binance users hold over 568k BTC worth $41.09 billion as of the time of writing, while the exchange maintains a net balance of over 594k BTC. Similarly, while Binance users hold 4.4 million ETH ($16.04 billion) as deposits, the exchange boasts a balance of 4.6 million ETH ($16.61 billion).

The PoR system is crucial for Binance and other major exchanges to prove that they hold customer assets as is, following the epic collapse of FTX. The system helps establish trust between crypto holders and platforms, especially amid pricе volatility and market slumps.

In conclusion, Binance’s colossal SHIB holdings, which exceed users’ deposits, demonstrate the exchange’s commitment to maintaining adequate liquidity and establishing trust with its users.

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SAHA

Saha is a cryptocurrency journalist specializing in blockchain technology and digital finance.

Saha holds positions in BTC. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Daily is the official publication of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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