Binance has dismissed hypothesis that it’s offloading its property, attributing current steadiness sheet changes to inside treasury administration reasonably than liquidations.
On Feb. 11, the change clarified to CryptoSlate that it had not engaged in asset gross sales. As an alternative, the on-chain changes had been a part of an inside accounting course of.
The agency’s spokesperson mentioned:
“Binance is just not promoting property. This was merely an adjustment within the Binance treasury’s accounting course of. Person funds are SAFU, as all the time.”
Rumors of Binance promoting its property surfaced on social media platform X after its Bitcoin and Ethereum holdings sharply declined over 90% in January.
Crypto analyst AB Kuang.Dong defined that the affected property originated from Binance’s previous income reasonably than consumer funds. He famous that a good portion of those holdings had been transformed into USDC, with Binance Coin (BNB) seeing the smallest discount at 16.6%.
CryptoSlate’s assessment of Binance’s proof of reserves highlights these shifts. On Jan. 1, the change reported a considerable surplus of property past the 100% buyer assure, with most main cryptocurrencies reporting double-digit share collateral.
Nonetheless, by Feb. 1, 2025, this extra collateral had shrunk significantly, with some property collateral lowered to as little as 0.01%, whereas solely BNB retained as much as 12.37% in surplus.
Whereas different crypto reserves declined, Binance’s USDC holdings dramatically rose throughout the identical interval. The change’s reserve information exhibits that the USDC steadiness grew by over $1 billion, pushing its collateralization fee above 40%.
