Binance proof-of-reserves shows 582K BTC to 575K BTC user balance, a 101% ratio

https://www.theblock.co/post/189946/binance-releases-proof-of-reserves-system-starting-with-bitcoin

by Terretta • 4 years ago

28 14 4 years ago

tschwimmer• 4 years ago

As has been discussed to death at this point, reserves are only half the story. In order to get a sense of solvency, you'd need to understand what Binance's liabilities are. They only have calculated a tiny subset of this: user deposits.

acapybara2• 4 years ago

Impossible --unless you go fully on-chain.

skinnymuch• 4 years ago

Sure but if you’re going to present something at least present a picture that matters. Even if it’s not provable.

senttoschool2• 4 years ago

It's possible. It's called auditing by a big 4 firm, which Binance will never allow because they're a fraud.

MuffinFlavored3• 4 years ago

To clarify, Binance/nor anybody else are disclosing their liabilities at all, right?

Like, as a customer, you have 0 insight/auditing into whether their reserves are 1:1 with liabilities, 2:1, 1:2, etc. etc.

It's almost like... dishonest?

Saying "look! our reserves! we're above water! we're not over-leveraged! trust us!" and then hoping people are... foolish enough?... stupid enough?... to not know to ask... "ok... and liabilities?..."

acapybara2• 4 years ago

Good, they seem to have more than enough to cover claims.

It's interesting to me that the Bitcoin network itself is the ultimate authority for truth here.

taolegal• 4 years ago

Why is this getting downvoted? Are people upset that bitcoin seems a lot better off than all the other apparently much more centralized systems?

IXxXI• 4 years ago

Binance is pushing for global crypto regulation, which no one wants or supports.

They also have a guilt by association issue due to them being closely affiliated with FTX.

Their fractional reserve rates (which are inferior to tether) aren't likely to impress many who have been paying attention.

Binance proof-of-reserves shows 582K BTC to 575K BTC user balance, a 101% ratio

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