Binance has dismissed hypothesis that it’s offloading its belongings, attributing current steadiness sheet changes to inside treasury administration slightly than liquidations.
On Feb. 11, the alternate clarified to CryptoSlate that it had not engaged in asset gross sales. As an alternative, the on-chain changes have been a part of an inside accounting course of.
The agency’s spokesperson stated:
“Binance shouldn’t be promoting belongings. 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 belongings 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 belongings originated from Binance’s previous income slightly than person 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 evaluation of Binance’s proof of reserves highlights these shifts. On Jan. 1, the alternate reported a considerable surplus of belongings 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 belongings collateral decreased 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 alternate’s reserve knowledge reveals that the USDC steadiness grew by over $1 billion, pushing its collateralization charge above 40%.
