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Binance is addressing fear, uncertainty and doubt (FUD) around its crypto exchange platform after the high-profile collapse of FTX.
in a new company blog postwhich explains why some of the popular narratives about the world’s largest digital asset exchange by volume being financially unsound are untrue.
First, Binance will address rumors that users do not have enough reserves to withdraw their coins.
Binances business model is very simple. The platform makes its profit primarily by charging transaction fees. Company assets are completely separate from users assets under custody. Debt.Therefore, Binance is in a very healthy financial position.We have sufficient capital reserves to cover our day-to-day operations.Through a tough cycle
Binance will not embezzle user funds for trading or investment, will not be in debt or be on the list of creditors of recently insolvent companies. ”
Binance also announced a temporary suspension of USD Coin (USDCIt states that even if USD Coin is not available, users can withdraw other stablecoins at a 1:1 ratio.With the ability to withdraw stablecoins suspended for about eight hours last week, Binance action A token swap, according to a CNBC report.
It should be emphasized that users can withdraw other stablecoins such as BUSD, USDT, etc., even while USDC withdrawals are suspended. [Tether]USDP [Pax Dollar]and TUSD [True USD] Normally. User funds are 1:1 supported and have no liquidity issues. “
Binance continues to explain the Mazars issue. announced Service to cryptocurrency clients may be suspended and a liquidation event may occur. According to the blog post, Mazars has stopped working with all companies active in the crypto space, not just Binance.
What needs to be explained and clarified is that [audits are] It is aimed at the financial situation of listed companies, not centralized exchange chains.
On-chain total reserve asset verification is fundamentally different from the on-chain asset verification required by Binance. On-chain verification of total reserves of cryptographic companies is a very new field. “
Earlier this month, Mazars clearly Binance has sufficient reserves to back the user’s Bitcoin (Bitcoin).
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