The liabilities data for Binance reported in Mazars’ report largely align with expectations, CryptoQuant specialists said.
We compared Binance’s liabilities stated in the report to CryptoQuant’s on-chain metric: Binance BTC Reserve
We found that Binance’s reported liabilities are very close to what we thought they would be (99%).
Chart 👇https://t.co/vQIKn7ImYn pic.twitter.com/ihAyVgq6zP
— CryptoQuant.com (@cryptoquant_com) December 15, 2022
Earlier, Mazars published the results of verifying the exchange’s Bitcoin liabilities to clients and their backing by reserves. According to Mazars, user deposits are backed by platform assets at 97%. When accounting for bitcoins lent to users on credit, the figure rises to 101%.
Experts criticised the conducted procedure Proof-of-Reserve. In their view, it did not convince in the safety of client funds on the platform, as it did not provide insight into the effectiveness of internal-control systems.
CryptoQuant analysts confirmed the high level of backing for user deposits on Binance.
«We found that Binance’s liabilities stated in the report are close to our assessment (about 99%),» they noted.
CryptoQuant introduced its own metric named Clean Reserve. The indicator accounts for reserves excluding the exchange’s own token (Binance’s is BNB).
The data show that the leading platform’s indicator is at roughly the same level as other top exchanges — around 90%.
The below chart shows that Binance’s Clean Reserve is at the same level as other top exchanges: around 90%. pic.twitter.com/ZeZHtb8pBC
— CryptoQuant.com (@cryptoquant_com) December 15, 2022
Binance’s reserve volumes do not show a scenario similar to FTX on the eve of the collapse, the analysts emphasised. They also noted that their study concerns the technical side:
«Our analysis should not be interpreted as a positive assessment of Binance as a company or of the BSC/BNB networks».
Earlier, amid discussion of Mazars’ report, Binance CEO Changpeng Zhao denied rumors of liquidity problems at the exchange.
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