11-26-2022, 10:47 PM
Why do people trust Binance if over 50% of their reserves are in BUSD, BNB and USDT?
<!-- SC_OFF --><div class="md"><p>As we can see on CMC Binance only holds 13.38% of reserves in BTC, 8.40% in ETH and 14.04% in Other.</p> <p>BUSD of 30.59% + USDT of 22.78% + BNB of 10.82% = 64.19% of reserves. So the majority of holdings are their own token that is claimed to be backed 1:1 (proof? I have not found), Tether which everyone knows is fraudulent, and BNB which is also their own token.</p> <p>FTX was just ruined partly because they owned so much of their own (illiquid) tokens. If Binance needed to liquidate would they be able to cover all their needs? This seems unlikely given the percentage of these holdings.</p> <p>CMC: <a href="https://coinmarketcap.com/exchanges/binance/">https://coinmarketcap.com/exchanges/binance/</a></p> <p>Binance holds $4B in BTC compared to Coinbase holding $33B. That is a massive difference.</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/batido6"> /u/batido6 </a> <br/> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/z5ewq5/why_do_people_trust_binance_if_over_50_of_their/">[link]</a></span> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/z5ewq5/why_do_people_trust_binance_if_over_50_of_their/">[comments]</a></span>
<!-- SC_OFF --><div class="md"><p>As we can see on CMC Binance only holds 13.38% of reserves in BTC, 8.40% in ETH and 14.04% in Other.</p> <p>BUSD of 30.59% + USDT of 22.78% + BNB of 10.82% = 64.19% of reserves. So the majority of holdings are their own token that is claimed to be backed 1:1 (proof? I have not found), Tether which everyone knows is fraudulent, and BNB which is also their own token.</p> <p>FTX was just ruined partly because they owned so much of their own (illiquid) tokens. If Binance needed to liquidate would they be able to cover all their needs? This seems unlikely given the percentage of these holdings.</p> <p>CMC: <a href="https://coinmarketcap.com/exchanges/binance/">https://coinmarketcap.com/exchanges/binance/</a></p> <p>Binance holds $4B in BTC compared to Coinbase holding $33B. That is a massive difference.</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/batido6"> /u/batido6 </a> <br/> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/z5ewq5/why_do_people_trust_binance_if_over_50_of_their/">[link]</a></span> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/z5ewq5/why_do_people_trust_binance_if_over_50_of_their/">[comments]</a></span>