7 months ago
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Binance, the world’s largest cryptocurrency exchange, has released its latest Proof of Reserve (PoR) report, displaying trillions of Shiba Inu tokens held by users on the exchange.
Binance Holds Over 67 Trillion Shiba Inu Tokens
On Monday, April 1, Binance published its 17th proof of reserve report. The exchange revealed a ratio of over 100% between the net balances of all of its digital assets and customer net balance.
The ratio of Shiba Inu native token SHIB was approximately 103.60%, highlighting the exchange’s commitment to safeguarding users’ assets by collateralizing them at a 1:1 ratio.
As disclosed by the report, Binance currently holds about 65,321,321,452,095.36 (65.3 trillion) SHIB tokens in its customer net balance, while Binance’s net balance boasts a reserve of 67,670,462,296,521 (67.6 trillion) SHIB.
With the price of Shiba Inu trading around $0.0000276 at the time of writing and reflecting a steep decrease of 5.83%, this puts users’ Shiba Inu deposits at a value of more than $1.8 billion. Alternatively, Binance’s total SHIB reserves are worth over $1.86 billion.
In contrast to its SHIB reserve in February, the amount of SHIB tokens in Binance’s latest report has slightly reduced, suggesting that investors may have potentially liquidated a small portion of their holdings. Around February and March 2024, the interest and hype surrounding Shiba Inu peaked, prompting numerous investors to invest in the doggy-themed meme coin. Fueled by the increasing demand, the cryptocurrency had recorded double-digit gains and became one of the most searched crypto assets on Google.
Proof Of Reserve Shows 100% Backed Assets
Binance’s regular release of its proof of research report is a way of maintaining transparency and accountability for its users. The exchange has revealed that its proof of reserves encompasses all of the assets it holds in custody for users.
Moreover, Binance has stated that its digital assets are 100% fully backed, ensuring that client’s funds are safe and well collateralized. Binance uses a unique strategy to ensure all user assets in its reserve are protected.
The exchange has provided funds to cover all users’ assets in a ratio of 1:1, as well as some reserves. This essentially means that the exchange’s net balance would always exceed its customer’s net balance. In addition, when a user deposits one Bitcoin or 1,000 Shiba Inu tokens, Binance’s reserves increase by at least one BTC or 1,000 SHIB.
Binance also revealed that it always keeps emergency funds (SAFU funds) for extreme cases. This is to ensure the exchange’s liquidity management and mitigate losses from market volatility.
Additionally, the exchange disclosed that it currently has zero debt in its capital structure, utilizing the Merkle Tree feature to allow users to verify their assets to confirm that their funds are backed 100% and are held in a 1:1 ratio.
Featured image from Pintu, chart from Tradingview.com
