Saha Swatilakha
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 price 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.
