- Binance Coin ($BNB) is down 5.9% in the past seven days, with other top cryptocurrencies outperforming it.
- Investors are concerned about ‘red flags’ following Binance’s proof-of-reserves announcement.
Compared to other top cryptocurrencies, Binance’s BNB is underperforming right now. Trading close to the $250 support level in the past seven days, BNB has somewhat recovered from its $262 seven-day low and is currently being traded at $274.17 as of writing. This contrasts with market leaders Bitcoin and Ethereum, which have had stronger seven-day performances.
Binance’s CZ has been vocal following the collapse of FTX, reassuring investors with a proof-of-reserves statement and what seems like daily situational updates via Twitter.
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Ignore FUD. Keep building!— CZ Binance (@cz_binance) December 12, 2022
The Binance CEO urges investors to ignore FUD during a turbulent news cycle. Source: Twitter
The reassurance follows an article published by Reuters, which alleges that Binance is guilty of helping criminals launder over $10 billion in funds.
The crypto community is more cautious than ever
A few Binance headlines from the last 24 hours:- US Justice Department may charge Binance Execs for money laundering- Binance locks withdrawals for some accounts amid what CEO calls 'just market behavior'- Binance's proof of reserves raises red flags— Genevieve Roch-Decter, CFA (@GRDecter) December 12, 2022
One Twitter user summarizes the recent ‘red flags’ regarding Binance. Source: Twitter
Other community members, however, point out that the ‘FUD’ is coming from biased sources as comparisons are drawn between the media treatment of CZ and SBF, respectively.
Binance’s proof-of-reserves have also come under scrutiny, with concerns around the proof-of-reserve verification system failing to account for liabilities and the numbers not vouching for anything.
Binance's proof of reserves raises red flags.#Binance #Binancecoin #Crypto #cryptocurrency #Cryptotrader pic.twitter.com/cecYViUCTn— SmartViewAI.Com (@smartviewai) December 13, 2022
Data analysis platform @Smartviewai summarises the red flags in Binance’s statement. Source: Twitter
Binance is under the media spotlight, and many community members are prompting others to remove their funds from the exchange. As always, not your keys – not your crypto.
On the Flipside
- Binance has billions in assets under management, and withdrawals would have to increase significantly for Binance’s insolvency to have any legitimacy – the Mazars audit confirms Binance is ”101% collateralized,” so theoretically, they could handle full customer withdrawals.
Why You Should Care
Binance is the largest and now most trusted cryptocurrency exchange. Their recent reassurances are designed to put customer concerns at ease – but as always, it’s important to do your due diligence and pay attention to changes in the industry. As many investors know, things can rapidly take a turn for the worse so it is important to understand the risks to your funds if the worst-case scenario happens.
More updates from Binance:
Binance Halts USDC Withdrawals Amid Massive Outflows