- Binance’s latest proof-of-reserves update for July reveals a 1.29% increase in Bitcoin holdings and a slight 0.21% decrease in Ethereum assets.
- Binance’s Shiba Inu (SHIB) token reserves fell by 0.27% in July, continuing a downward trend from June, where reserves dropped by 3% over two months.
Crypto exchange Binance released its proof-of-reserves for the last month of July, giving a complete breakdown of the total assets under management. There’s a minor deviation in the top asset holdings such as Bitcoin, Ethereum, USDT, etc. As per the data assimilated by Wu Blockchain, the Bitcoin holdings jumped by 1.29% while the Ethereum holdings dropped by a minor 0.21%.
Binance released the 21st proof of reserves (snapshot date August 1). User BTC assets are 613,471, up 1.29% from July 1, an increase of 7,834 BTC. User ETH assets are 4.701 million, down 0.21%. User USDT assets are 21.19 billion, down 1.52%. Binance has a net inflow of US$3.27锟?pic.twitter.com/SpFNLQ8M5G
锟?Wu Blockchain (@WuBlockchain) August 6, 2024
Crypto exchange Binance declared its commitment to transparency with its Proof-of-Reserves initiative, informing investors that all the assets in its custody are fully covered. The company has assured that it holds all the user assets in a 1:1 ratio along with additional reserves. Furthermore, it has also confirmed that Binance maintains zero debt in its capital structure while establishing an emergency fund for extreme situations.
In order to demonstrate this, crypto exchange Binance has implemented a Merkle Tree system wherein it allows users to verify the assets within the platform. The company asks each user to confirm their asset holdings using a personal Merkle hash or record ID and validate it by a third-party audit agency. This system ensures that users can independently verify that their funds are securely held at a 1:1 ratio.
Binance’s Dropping SHIB Holdings Raise Concerns
As per the Proof of Reserves report from Binance, the crypto exchange saw its Shiba Inu holdings drop by 0.27% in the month of July. As of June, Binance held 62.96 trillion Shiba Inu tokens in its reserves, but this number has now decreased to 62.79 trillion tokens.
Although a 0.27% drop might appear minor, it is part of a larger trend. Back in June, Binance’s reserves included approximately 64.8 trillion SHIB tokens. Over two months, the SHIB reserves have declined by 3%, which is a significant change that should not be overlooked.
According to CoinMarketCap data, the SHIB/USDT is the 25th most traded pair on the crypto exchange Binance, with daily trading volumes of over $85 million. This hints at Shiba Inu’s strong popularity. According to the Crypto Key News report, this drop in the SHIB holdings on Binance reflects the broader market trend.
Binance recorded total net inflows of more than $1.2 billion on Monday, despite the market downturn earlier this week.
This result marks one of the largest net inflow days in 2024, indicating strong investor confidence despite broader market challenges. Additionally, Monday’s trade volume was among the highest on Binance this year, demonstrating robust activity on the platform.
The Bitcoin price tanked all the way to $50,000 on Monday, however, has recovered more than 15% since then and is now trading at $57,000 amid strong whale accumulation, reported CNF.
