Binance’s on-chain audit by blockchain analytics firm CryptoQuant concluded that Binance’s reserves bitcoin (btc) And other major coins “are not showing ‘FTX-like’ behavior at this point.”
In analyzing the numbers, CryptoQuant said it compared Binance’s BTC liabilities, as shown in the exchange’s recent proof-of-reserve report, to how much BTC on-chain data shows Binance holds.
“We found that Binance’s reported liabilities are much closer to what we thought (99%),” the firm wrote.
The comments from the on-chain analytics firm came in a Twitter thread on Friday.
CryptoQuant said that Binance’s own token, bnbDoes not represent a large portion of the total exchange reserves compared to what is common in other major exchanges.
The “clean reserves” metric, which represents the portion of reserves not made up of the exchange’s own tokens, is “approximately 90%,” the firm wrote.
Finally, CryptoQuant said that on-chain data shows that Binance has been honest about its assets and liabilities in BTC terms.
“Our analysis should not be interpreted as a favorable opinion of Binance as a company or the BSC/BNB network. Our data only reflects the amount of BTC Binance says it holds as liabilities at this time. [proof-of-reserves] The report matches our reserve data,” the firm said.
Auditing firm ends work for crypto companies
The on-chain audit came as news broke of Mazar, the auditing firm that was behind Binance’s Recent Proof-of-Reserve ReportNow says it will not work with clients in the crypto industry.
“Mazars has indicated that they will be temporarily halting their work with all of their crypto customers globally, including Crypto.com, KuCoin and Binance. won’t be able to work together,” a Binance spokesperson told CoinDesk on Friday.
Meanwhile, the link to the Binance report on Mazars’ website is no longer working.
“Auditors Still Learning” About Crypto
Commenting on Binance’s lack of formal audits, Jeff Dorman, chief investment officer at crypto investment firm Arca, said it is understandable that traditional auditors find crypto companies difficult to work with. “Auditors are still learning,” he said.
,[…] Auditors do not like to take risks […]Dorman wrote on Twitter, clarifying that not having an audit doesn’t necessarily make someone a bad actor. He added that not being audited could simply mean that the auditor is afraid of being wrong.
He added that it is therefore difficult to say with certainty whether there are anomalies on Binance:
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