BinanceCoin slumps hard as the Binance FUD intensifies with more platforms displaying their concerns over the reserves of the platform
The FTX fiasco does not appear to settle so soon as the aftermaths of the collapse appear pretty huge than expected. It started with Binance letting off all the FTT tokens worth more than $500 million, which ignited a fresh FTT price plunge. After creating a ripple of fallouts with Genesis, BlockFi, etc, now the wave has stuck back to Binance. No sooner had it halted the USDC withdrawals, than the ‘Binance FUD’ began to circulate.
Traders just began withdrawing from Binance as they feared as part of the past events with Terra & FTX. Further, the Proof-of-Reserve which was promoted by the Binance CEO, CZ to maintain transparency also backfired on the platform as the auditors claimed the report was not satisfactory. This impacted the price of the native token BNB which is trading below $300 with a huge drop of nearly 25% in the past few days, marking the lows at $220.
The markets have turned extremely bearish over Binance right now which was multiplied by the Fed Chair’s hawkishness and ongoing SBF trail. Due to this, the traders have expressed their desire to sell as huge negative mentions w.r.t Binance prevailed, socially. This is enough to keep the markets consolidated or captivated for a prolonged period.
Binance Under-Reported BTC Holdings
After the FTX debacle, Binance was the one that promoted to display of the Proof-of-Reserve on the exchanges. After Binance, almost all the exchanges also exhibited their respective PoR being transparent and to regain the trader’s confidence.
However, Mazars, the firm which audited Binance, initially raised concerns over Binance’s PoR report and later stopped auditing the other crypto platforms like KuCoin, CryptoCom, etc, creating a fresh wave of FUD.
As per the new report from Glassnode, the Binance exchange balance and the reported balance in PoR displayed a huge difference.
As per Glassnode, the balance on the Binance exchange displays a total of 584,600 BTC but the platform reported 359,300 BTC in its PoR. Considering this report, there is a huge difference of more than 200K BTC worth nearly $3.4 billion at the moment. Meanwhile, the Ethereum reserves accurately display 4.65 million ETH held.
Many of the crypto influencers do believe that Binance FUD is being circulated to revive the FTX failure again as the platform is processing the withdrawals without any delays. Conversely, the traders’ confidence appears to have shaken as the platform recorded huge outflows recently. While, the Binance CEO, CZ, is trying his level best to disperse the FUD over the platform, the BNB price continues to bleed massively.
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