Binance, the world’s leading cryptocurrency exchange, has released its latest Proof-of-Reserve (PoR) report, offering transparency into its holdings of various digital assets, including Shiba Inu (SHIB). This report, published in April 2024, details the exchange’s SHIB reserves as of April 1, 2024, at 00:00 UTC.
Binance Holds Over 67 Trillion Shiba Inu (SHIB)
The PoR report reveals that Binance currently holds a significant amount of SHIB tokens, exceeding 67.67 trillion. This substantial reserve translates to a holding valued at approximately $1.96 billion based on the SHIB trading price at the time of the audit ($0.00002894).
Read Also: Binance Now Holds 78.5 Trillion Shiba Inu (SHIB) on Behalf of Users
Collateralization Ratio Exceeds 100% for SHIB
Interestingly, the exchange’s SHIB reserves surpass the net balance held by its users. According to the report, Binance users collectively hold roughly 65.32 trillion SHIB tokens, representing a value of $1.89 billion. This translates to a collateralization ratio of 103.60%. In simpler terms, for every 1 SHIB token deposited by a user, Binance holds slightly more than 1 SHIB token in reserve.
The implementation of the PoR system by Binance and other major exchanges stems from the collapse of FTX in late 2023. This initiative aims to enhance transparency and rebuild trust within the cryptocurrency community. By publishing monthly PoR reports, exchanges demonstrate that they hold the digital assets deposited by their users in a verifiable manner.
Recognizing the growing popularity of Shiba Inu on its platform, Binance incorporated SHIB into its PoR system in February 2023. Currently, the exchange’s PoR system covers a total of 31 cryptocurrencies, encompassing the most widely traded digital assets on Binance.
Binance Holdings for Bitcoin (BTC) and Ethereum (ETH)
The latest PoR report also sheds light on Binance’s reserves for other prominent cryptocurrencies. As of April 1, 2024, the exchange maintains a collateralization ratio exceeding 100% for both Bitcoin (BTC) and Ethereum (ETH).
For BTC, the collateralization ratio sits at 104.46%, with user deposits accounting for 568,788.919 BTC (approximately $41.09 billion) and the exchange holding a net balance of 594,136.021 BTC (roughly $42.92 billion).
Similarly, the collateralization ratio for ETH stands at 103.58%. Binance users hold 4,446,480.486 ETH (valued at $16.04 billion) in deposits, while the exchange boasts a balance of 4,605,595.896 ETH (approximately $16.61 billion).
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It’s important to note that Binance is set to implement a new mandatory know-your-customer (KYC) policy by April 20, 2024. This policy might influence the exchange’s cryptocurrency holdings. Users who fail to complete the KYC requirements will no longer have access to their sub-accounts on the platform, potentially leading to a shift in the overall balance of assets held by Binance.
The release of the PoR report by Binance is meant to bolster transparency regarding the exchange’s reserves of various cryptocurrencies, including the increasingly popular SHIB. As the cryptocurrency market continues to evolve, such initiatives can play a crucial role in fostering trust and security for investors.
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