Binance Faces Customer Fear after FTX Crash
2022.12.23 02:16
Binance Faces Customer Fear after FTX Crash
Budrigannews.com – Since FTX’s demise, the world’s largest cryptocurrency exchange, Binance, has been confronted with an avalanche of FUD (fear, uncertainty, and doubt). With its most recent blog post, the business is now responding.
On December 22, Binance made a blog post in Chinese that addressed seven important points the company wanted to get straight. There was no English-language version available at the time of writing.
The temporary suspension of USDC withdrawals earlier this month was the first. It explained that the exchange was consolidating its stablecoin reserves into BUSD during a “token swap” conversion period.
The availability of sufficient reserves for withdrawals was the next topic it addressed. It proved that “all users’ assets in Binance are supported 1:1” and that the company’s financial health was excellent because it makes a lot of money from transaction fees. CryptoQuant verified Binance’s reserves on December 16 and found no “FTX-like” behavior.
“Binance will not embezzle users’ funds for any transactions or investments, nor does it have any debts, nor is it on the list of creditors of any company that has recently gone bankrupt.”
It stated that encrypted on-chain verification was a novel field that these businesses may not be able to carry out in regards to Mazars and the “Big Four” auditing firms refusing to work with crypto companies.
It noticed that these reviews are commonly focused on the monetary circumstance of the recorded organization, not checking hold resources.
Mazars has since eliminated Binance’s review reports from its site. Additionally, Binance stated that because it was a private company rather than a listed one, it was not required to disclose any financial information.
“In many jurisdictions where we operate, we have shared or are sharing operational and financial information as required by local regulators.”
Binance stated that mainstream media has been targeting the company with salacious reporting for a considerable amount of time in response to a Reuters report claiming that the U.S. Department of Justice was conducting an investigation into the business. It added that it spent the most money fighting crypto crime and had the most compliance licenses worldwide.
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Lastly, the CEO’s remarks that Binance did not destroy FTX were reiterated in the blog post; That was done by FTX on its own. According to the statement, “we are more focused on continuously promoting and expanding industry adoption,” Binance does not consider other exchanges to be competitors.
There you have it, then. Despite the fact that the FUD has been proven false, investors have been leaving the exchange in recent weeks to self-custody their crypto assets.
