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Binance's XRP Balance Showcased in Latest PoR Report, Is There Cause for Concern?

Thu, 09/07/2023 - 16:35
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Godfrey Benjamin
Binance has published its balance for XRP, BTC in latest report
Binance's XRP Balance Showcased in Latest PoR Report, Is There Cause for Concern?
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Binance exchange has once again published its proof-of-reserve (PoR) report, for the 10th time, showcasing the balance of some of its top digital currencies, including XRP. According to the details contained in the report from the crypto trading platform, the XRP user's balance is pegged at 2,587,670,373.002 units, while the total balance of XRP currently is pegged at 2,686,407,725.227.

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This price point has placed the XRP reserve ratio at 103.82%, an indication that the trading behemoth has more than it needs to fulfill the user's demand request.

Binance pioneered the publication of reserve reports among exchanges after the implosion of the FTX Derivatives Exchange. The report can be verified both independently and by a third party to show that the quoted figures are indeed accurate. With Binance and other exchanges like OKX staying true to this PoR report, they have finally been able to earn some level of trust among users.

According to the update, the exchange also maintains a 105% reserve ratio for its Bitcoin holdings with the total Ethereum ratio coming in at 105% as well.

Any cause for concern?

By virtue of the current data shared by Binance, its books are perfect to bolster its current business operations; however, top industry analysts believe the exchange has some transparency issues that might invalidate some of its claims.

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According to Ikigai Funds cofounder Travis Kling, most of the figures shared by Binance do not count as a part of its reserve asset, as it does not control the funds. The market expert said that Binance has not for once given evidence of customer liabilities, a scenario that seems impossible in an ideal business setting.

This claim underscores Binance's struggles in the broader crypto world, as marked by its ongoing lawsuit with the United States Securities and Exchange Commission (SEC).

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About the author

Godfrey Benjamin is an experienced crypto journalist whose main goal is to educate everyone around him about the prospects of Web 3.0. His love for crypto was birthed when, as a former banker, he discovered the obvious advantages of decentralized money over traditional payments. With his vast experience covering various aspects of Web3, Godfrey's articles has been featured on, Cryptonews and Coingape, among others.