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Gungun Bhatia
Dec 17, 2022
by Gungun Bhatia

CryptoQuant Data Indicates Binance Isn't Displaying 'FTX-Like' Behavior

CryptoQuant Binance

Table of contents

  1. CryptoQuant Estimations of Binance Reserves
  2. Binance Reserves Are Cleaner or Independent
According to a report from CryptoQuant, Binance, now the top cryptocurrency exchange by volume traded, is not going to replace FTX. The analytics company headquarters in Seoul used on-chain data to back up assertions made in a recent audit that Binance is overcollateralized.

CryptoQuant Estimations of Binance Reserves

CryptoQuant's estimation of Binance's BTC reserves (liabilities) at the time Binance's Proof of Reserves document was prepared was 591,939 BTC. In contrast, the Customer Liability Report Balance in the PoR report was 597,602 BTC. Using the ticker symbol for bitcoin, CryptoQuant noted, CryptoQuant data addressed 99% of Binance's liabilities. According to it, when the assets and debtors of the exchange are taken into account, collateralization is 101%.

According to CryptoQuant, who cited on-chain statistics, Binance does not experience the same amount of outflows as FTX saw in the days leading up to its collapse. Although withdrawals have grown, they still represent a modest portion of the total reserves of the exchange. Binance CEO Changpeng "CZ" Zhao stated in a tweet that he embraces the stress test.

Binance Reserves Are Cleaner or Independent

In contrast to FTX-Alameda, Binance's reserves are said to be cleaner or not dependent on the exchange's native cryptocurrency, BNB, according to CryptoQuant. The exchange experienced a liquidity difficulty that finally resulted in its bankruptcy when research revealed that its sister firm, FTX, Alameda Research, was substantially funded by the exchange's FTT coin. According to CryptoQuant, Binance's level of clean reserve is appropriate.

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CryptoQuant Data Indicates Binance Isn't Displaying 'FTX-Like' Behavior
Gungun Bhatia
Gungun is an enthusiastic writer that likes to create content for various aspects of the blockchain and crypto industry. She carries out extensive research and provides readers with informative and high-quality material.

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