“Our objective is to allow users of our platform to be aware and make informed decisions that are aligned with their financial goals.” — Binance
The recent crisis and series of bankruptcies in the crypto market have greatly affected everyone’s confidence in crypto. The most recent unpleasant surprise is the FTX liquidity crunch. Also, recent revelations of how things went wrong are not encouraging either.
To increase confidence and transparency in the space, Binance CEO, Changpeng Zhao, urged exchanges to publish a Merkle tree proof of funds. The exchange further announced its intention to increase its commitment to transparency.
While Binance is still working on the proof of funds, it went ahead to declare its major assets. In its Twitter post, the company revealed details of the major assets it holds in its hot and cold wallets.
The exchange also made it known that it will publish the Merkle tree proof of funds within the next few weeks. The published wallet addresses show that Binance has 475,000 Bitcoin, 4.8 million Ethereum, 17.6 billion USDT, 21.7 billion BUSD, 601 million USDC, and 58 million BNB.
In a statement by Binance,
“Our objective is to allow users of our platform to be aware and make informed decisions that are aligned with their financial goals.”
Furthermore, in the spirit of transparency, CZ shared the letter he sent to the Binance team following the FTX crisis.
He reiterated that FTX's downfall was not good for anyone, hence, not a win for them. He noted that regulators would increase exchange scrutiny, and there would be increased difficulty in obtaining licenses worldwide.
However, CZ acknowledged that the exchange embraces scrutiny, and as such, it will significantly increase its transparency, proof-of-reserves, insurance funds, and many more.
Finally, CZ urged his team to ignore the swindling prices and focus on providing products that are beneficial to users.
