Seoul based analytics company, CryptoQuanthas released brand new on-chain data showing Binance does not behave like the following ftx. The collapse of the latter has led many to become afraid of the transactions of exchanges. However, the statistics clearly show that they are not the same.
The data references Binance’s recently released proof-of-reserves audit. Furthermore, CryptoQuant is clear in its assessment that the largest cryptocurrency exchange platform by volume has too much collateral.
Data shows a big difference between Binance and FTX
The collapse of FTX, one of the world’s major exchange platforms, has led to renewed fear and volatility within the market. Subsequently, the arrest of founder and former CEO, Sam Bankman-Fried, has only increased customer concerns. As a result, many focused their anxious questions on the biggest competitor of the now bankrupt platform.
Binance has had an interesting few days, with withdrawals paused and possible DOJ investigations on the ledger. Now, however, data from the platform’s recent audits has shown that consumer fears may be misplaced.
Analytics firm CryptoQuant has released on-chain data showing that Binance is not the next FTX. In addition, it was concluded that the behavior of the two exchanges was in stark contrast to each other.
CryptoQuant stated, “At the time of Binance’s Proof of Reserves report, CryptoQuant’s estimate of Binance’s BTC reserve requirements was 591,939 BTC. This compares to the PoR’s Customer Liability Report balance of 597,602 BTC. We can see that the CryptoQuant data covered 99% of Binance’s liabilities.”
The company further noted that Binance’s collateral is 101%, taking into account both the platform’s assets and accounts receivable. Moreover, citing on-chain data, it stated that Binance is not finding the same trading volume as FTX prior to bankruptcy. In conclusion saying that the increase in withdrawals is small compared to the reserves of the platform.