Binance’s Ethereum, Bitcoin reserves up in July – Here’s why this is important

  • Binance published its proof of reserves which showed signs of positive growth.
  • The social volume and sentiment around the BNB token declined significantly over the last few days.

Binance [BNB] has been through a series of litigious battles and regulatory scrutiny over the last year. Despite the struggles faced by Binance, the overall state of the exchange remained positive.

The proof is in the pudding

Binance released its latest, 20th proof of reserves report recently. The report details the cryptocurrency holdings of its users, providing transparency into the exchange’s financial health.

Looking at the user asset breakdown, we see a positive trend in Bitcoin holdings. User BTC assets reached 605,637, reflecting a 4.01% increase compared to 1st June.

Ethereum holdings also showed a slight increase of 1.01%, with user ETH assets reaching 4.711 million.

However, there was a decrease in holdings for Tether (USDT). User USDT assets fell to 21.51 billion, representing a decline of 2.54% from the previous month.

Regularly releasing proof of reserves reports builds trust with users by demonstrating solvency and the secure storage of their assets. This transparency can attract new users and encourage existing users to hold larger amounts of crypto on the platform.

Screenshot 2024 07 07 at 5.40.48 PM

Source: Binance

Problems overseas

However, there were some problems that Binance was facing that could cause trouble for the exchange.

Olubukola Akinwumi, the deputy director of the Central Bank of Nigeria (CBN), raised serious accusations against Binance.

Local media reports allege that Akinwumi accused the cryptocurrency exchange of conducting financial transactions that are typically reserved for authorized banks and institutions.

Akinwumi’s testimony went beyond just the money laundering allegations. He specifically pointed out that Binance allows users in Nigeria to conduct transactions while hiding behind pseudonyms.

This, according to Akinwumi, directly violates CBN regulations. The central bank mandates that all parties involved in financial transactions must disclose their true identities.

Further concerns were raised regarding Binance’s peer-to-peer (P2P) platform. This platform facilitates direct transactions between users. Akinwumi highlighted that these transactions involve the transfer of Nigeria’s fiat currency, the Naira.

Read Binance Coin’s [BNB] Price Prediction 2024-25

These factors can tarnish the image and reputation of the Binance exchange which can even have adverse impacts on the BNB token. At press time, BNB was trading at $509.71 and its price had declined by 0.73% in the last 24 hours.

The social volume around the token had spiked, however weighted sentiment declined, indicating a growing number of negative comments around the BNB token.

BNB BNB 17.54.57 07 Jul 2024BNB BNB 17.54.57 07 Jul 2024

Source: Santiment

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