Binance’s Ethereum, Bitcoin reserves up in July – Here’s why this is important
  • Binance published a proof of reserves that showed signs of positive growth.
  • Social volume and sentiment around the BNB token has dropped significantly in the past few days.

Binance [BNB] Over the past year, Binance has been through a series of lawsuits and regulatory scrutiny. Despite the difficulties that Binance has faced, the overall situation of the exchange has remained positive.

The proof is in the results

Binance recently released its latest, 20th Proof of Reserves report, which details users’ cryptocurrency holdings and provides transparency into the exchange’s financial health.

A breakdown of user assets shows a positive trend in Bitcoin holdings: users’ BTC assets reached 605,637, up 4.01% compared to June 1st.

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

However, Tether (USDT) holdings declined, with user USDT assets falling to 21.51 billion, down 2.54% from the previous month.

By publishing regular Proof of Reserve reports, we demonstrate our solvency and secure storage of assets, building trust with our users. This transparency will help us attract new users and encourage existing users to hold larger amounts of crypto assets on the platform.

Source: Binance

Overseas issues

However, some of the issues Binance was facing could cause problems for the exchange.

Deputy Governor of the Central Bank of Nigeria (CBN), Olubukola Akinwumi, issued a stern rebuke to Binance.

According to local media reports, Akinwumi accused the crypto exchange of conducting financial transactions that are usually restricted to licensed banks and institutions.

Akinwumi’s testimony went beyond the money laundering allegations, specifically alleging that Binance allowed Nigerian users to trade under false identities.

According to Akinwumi, this is in direct violation of central bank regulations, which require all parties involved in financial transactions to reveal their true identities.

Further concerns were raised regarding Binance’s peer-to-peer (P2P) platform, which facilitates direct transactions between users, with Akinwumi highlighting that these transactions involve transfers of Nigeria’s legal tender, the Naira.

Binance Coin [BNB] Price Forecast 2024-25

These factors could tarnish the image and reputation of the Binance exchange and have a negative impact on the BNB token. At the time of writing, BNB was trading at $509.71, down 0.73% in price over the past 24 hours.

Social volume regarding the token has skyrocketed, but weighted sentiment has declined, indicating an increasing number of negative comments regarding the BNB token.

Source: Santiment


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