CryptoQuant: Binance Reserves Unquestionable Data

CryptoQuant has just released a report on the evidence audit results of Binance reserves. According to the analytics firm, the number of cryptocurrencies on the giant crypto exchange is unquestionable and true.

“The report shows Binance’s BTC obligations (customer deposits) are 97 percent guaranteed by the exchange’s assets. The guarantee increases to 101 percent when the BTC lent to customers is taken into account,” wrote CryptoQuant in its report released on Wednesday (14/12/2022).

Launching Cointelegraph, the analytics company added, on-chain data shows that Binance reserves data for ETH and stablecoins is still reasonable and does not show signs of an ‘FTX-like’ scandal.

“Additionally, Binance reserves acceptable data, which means the token itself, BNB, still has a low proportion of its total assets,” he reports.

Binance faced a FUD (fear, uncertainty, and doubt) storm this week after a US$5 billion withdrawal from the exchange last Tuesday (13/12/2022). Fears of a liquidity crunch and other bank run scenarios have inevitably increased.

Apart from that, Binance has also been in the spotlight for the past month following the FTX collapse. One of the ones that emerged was the criticism that the company owned by Changpeng Zhao deliberately bankrupted its rival, the platform owned by Sam Bankman-Fried.

Changpeng Zhao has worked hard to convince customers and investors that Binance has sufficient reserves and is fully supported.

Earlier this month, Binance released a proof-of-reserves report, but received criticism for not complying with procedures, as well as an incomplete audit process.

One of them, former head of the Stock Exchange Commission’s Internet Enforcement Office, John Reed Stark, argued that the report did not address the effectiveness of internal financial controls.

In addition, MarketWatch reports, companies that conduct business outside of offices in the Middle East, the Caribbean, Asia and elsewhere, never release audited financial statements.

But what is certain is that the CryptoQuant review results support findings by audit firm Mazars which stated that the liability in Binance reserves data is very close to its estimate of 99 percent.

Previously, data provider Nansen reported, that around 10 percent of Binance’s proof of reserves is held in the form of cryptocurrency BNB.

“Binance currently has US$60.4 billion in total assets based on their disclosed public addresses, US$6.2 billion of that total is BNB,” Nansen wrote.

However, the situation stabilized the next day and CEO Changpeng Zhao reported that outflows were not even among the top five for the exchange.

However, CryptoQuant cautions that their analysis should not be construed as an opinion favoring Binance as a company, the BSC/BNB network ecosystem, or the BNB token.

“This is simply a sign that the amount of BTC Binance says it owes at the time of the PoR report is reasonable, according to on-chain data,” concluded the firm.

Binance Reserves Audit: Have the Most BTC Reserves
Previously, CryptoQuant had placed Binance as a crypto exchange that had the most Bitcoin reserves among other crypto exchanges.

The world’s largest crypto trading company by trading volume,, is reported to be

In the firm’s report, Binance owns 584,083 BTC worth around US$9 billion (equivalent to Rp.141.5 trillion).

In fact, the number of holdings of Binance has surpassed that of the leading US-based crypto trading company, Coinbase.

Binance has surpassed Coinbase Pro to take the top spot in terms of Bitcoin reserves on exchanges, marking absolute strength during this bloody period, according to a crypto analyst at CryptoQuant, BinhDang.

“CZ’s every move will play the most important role in regaining confidence in this market, and vice versa; if he makes any mistake, it will be a colossal bloody disaster for this entire market,” added the analyst.

He also explained that there are five crypto exchanges that have the largest Bitcoin, Binance is in first place with a total of 584,083 BTC Bitcoin ownership, followed by Coinbase which has 533,048 BTC, Bitfinex 345,534 BTC, Gemini 158,918 BTC, and Kraken has 71,426 BTC.

Most recently, Zhao has warned his entire staff to be aware of possible market turbulence in the next few months, just days after the company announced data on Binance reserves.

Bloomberg cites the document warning Zhao that the industry is going through a historic moment in which Binance is in a strong financial position and will survive any crypto winter.