Notable revelations in Binance's latest wealth report
Binance's Proof of Reserves (PoR) shows that users still hold large amounts of crypto assets on the exchange despite recent legal troubles.
After the US Securities Commission (SEC) ended the Paxos investigation into the BUSD stablecoin issued by Binance, many questions arose as the investor community was concerned about the extent of the incident's impact on the exchange. pandemic. Actually, not much, at least based on the amount of cryptocurrency users are storing on the exchange.
Binance's July 2024 PoR report shows that the exchange currently holds about 115 billion USD of crypto in user funds, almost double the figure of 61 billion USD recorded a year ago. When reports of the multi-year US Department of Justice (DOJ) investigation into Binance were first revealed in December 2022, the PoR figure recorded at that time was only 45.6 billion USD.
At that time, BUSD was the seventh largest stablecoin by market capitalization - worth $16.1 billion before the SEC sent the Wells Notice to Paxos in February 2023. As a result, Paxos was forced to stop issuing BUSD, destroy 700 million USD of stablecoins associated with Binance's name and then gradually the exchanges as well as CEO Changpeng Zhao gradually "killed" them. By January of this year, there was only 100 million USD of BUSD left in circulation.
Immediately after the "loss" of its representative stablecoin, Binance began "promoting" new stablecoins TrueUSD, and FDUSD with headquarters located outside the United States. Not missing the opportunity, USDT also quickly filled the gap left by BUSD. However, over time, TrueUSD gradually lost popularity because Binance shifted its "favor" to FDUSD, since then the exchange has no longer listed TUSD trading pairs and expressed its separation from this stablecoin.
Comparing with the chart below, user deposits since January 2023 have continuously increased to create new peaks despite the ongoing legal troubles targeting Binance over the past year, showing customer confidence. The goods entering the trading floor do not change.
Despite the fact that former CEO Changpeng Zhao is serving a 4-month prison sentence, the total assets "deposited" by users on Binance show no signs of decreasing, simply a change in the percentage of cryptocurrency holdings. .
If in December 2022, Bitcoin (BTC) only accounted for 18% of users' funds, then at present this proportion accounts for more than 30%. Similarly, users also increased their BNB holdings from 14% to 20%, while ETH remained largely unchanged still hovering around 14%.
More notably, the entire user fund deposited on Binance is only about 20% stablecoins - equivalent to 24.4 billion USD - a decrease of more than 50% compared to the time before CZ's troubles took place. . This means that 80% of user assets on Binance are in the form of Bitcoin and altcoins - the highest level recorded.
Cryptocurrencies that Binance users prefer to increase their holdings compared to the time before the legal troubles broke out are Curve (CRV), Arbitrum (ARB), Aptos (APT), Hashflow (HFT), Enjin (ENJ) and Optimism (OP) - all increased by more than 70%, in the case of CRV alone it was 270%, perhaps investors believe that "behind" this token has founder Michael Egorov continuously. "support prices" despite all the "scary" fluctuations of the market.
Chiliz (CHZ) and Shiba Inu (SHIB) are at the bottom, down 32% and 18%, respectively. Meanwhile, USDT and USDC balances recorded growth of 51% and 37%, respectively.
These numbers demonstrate the stable operation of the exchange, and user confidence has not been shaken by the actions of the SEC and the US Department of Justice against Binance.
However, Binance still has to face many difficulties in the near future because the conflict between the exchange and Nigeria has not yet come to an end. Under successor CEO Richard Teng, Binance has new changes and directions to help strengthen the exchange's position.
