“There hasn’t been a shortage of records, all-time highs, and firsts in the crypto industry in the last few weeks,” stated Binance. With more than $100 billion in assets under custody as of March 18. It appears that cryptocurrency exchange Binance’s has emerged relatively unscathed from a series of US Department of Justice lawsuits against. The exchange and its co-founder Changpeng Zhao..
The report states that the assets held in custody by Binance users have more than doubled from $40 billion at the start of the year. Binance stated: “We hold all user funds at a 1:1 ratio. Plus additional reserves, which anyone can verify using Binance’s proof-of-reserves (POR) system.” The company also mentioned that the value of user assets under Binance’s custody. Has increased recently due to a notable and persistent increase in digital asset prices.
All of the major cryptocurrencies and altcoins presently have collateralization ratios of over 100% according to Binance’s proof-of-reserves. However, experts have cautioned that proofs-of-reserves only contain half the important reserve information and do not account for an entity’s obligations when determining net equity. Since then, Binance CEO Richard Teng has asserted that there is “no debt” in the exchange’s capital structure. The conversation said:
“Please note that the aggregate figures provided by blockchain market intelligence firms, while useful, are not a perfect representation of the amount of user funds on Binance: some of the assets included in such calculations are Binance’s own operational funds. The ultimate source of the most accurate information on user asset holdings on Binance are our monthly POR audits.”
Although Binance Labs, its venture capital division, has returned over 14 times on investments and now has a $10 billion portfolio. Binance stated on March 12 that it will be severing its relationship with the division. It said, “Binance Labs has no other relationship with the Binance cryptocurrency exchange or any affiliated business or entity. Other than that it is licensed by Binance to use its trademark.”
