Crypto exchange Binance has released its Proof-of-Reserves (PoR) report for September 2024, confirming that all user deposits are backed by more than 100%. This demonstrates the exchange’s financial stability and its readiness to meet any withdrawal requests.
As of October 1, 2024, the reserve ratios for the major cryptocurrencies are as follows:
- BTC — 106.73%
- ETH — 100.57%
- USDT — 111.38%
- USDC — 137.17%
- SOL — 102.75%
- XRP — 100.66%
For comparison, in the August 2024 report, the coverage ratios were: BTC — 106.84%, ETH — 103.68%, USDT — 112.82%, and USDC — 132.28%.
Changes in Deposit Volumes
The report also highlights a slight reduction in deposited volumes for some assets:
- BTC — decreased by 1.58%
- ETH — decreased by 1.37%
- USDT — decreased by 3.16%
What is Proof-of-Reserves?
Proof-of-Reserves (PoR) is an audit mechanism that confirms the availability of sufficient reserves to fully cover all user deposits held on the exchange. Binance introduced this practice in November 2022, after the collapse of FTX, when the company’s former CEO, Changpeng Zhao, announced the transparency initiative. By implementing PoR, the exchange aims to demonstrate its financial stability and ability to handle any volume of withdrawal requests.
This move has been a crucial step in restoring user trust in crypto exchanges and reinforcing Binance’s reputation as a reliable player in the digital asset market.
Info: incrypted.