UpdatesMar 08, 2023

Binance adds another 11 cryptocurrencies to its reserve report

One of the largest crypto exchanges increases its security with new digital items.

The Binance exchange makes every effort to assure the cryptocurrency community of its stable and healthy financial situation. As such, another digital asset has been added to their Proof-of-Reserves report. The current financial reserves of the platform are at the level of as much as 63 billion dollars.

Binance strengthens its reserves

On March 7, the company behind the world's largest cryptocurrency trading platform, Binance, announced that another 11 tokens had been added to its reserves. This is because this platform aims to increase its level of security.

The digital assets that secured the exchange's funds are: Mask Network (MASK), 1inch Network (1INCH), Enjin Coin, The Graph (GRT), Chromia (CHR), Curve DAO Token (CRV), WazirX (WRX), PowerPool ( CVP), Hashflow (HFT), SSV Network (SSV), and Dogecoin.

The exchange, after updating its reserve report, reported that the value of this system in tokens is currently over $63 billion. This sum consists of a total of 24 different assets. The largest share in them is held by Bitcoin (BTC), Ether (ETH) and Tether (USDT) with levels of USD 12.7 billion, USD 7.1 billion and USD 16.3 billion, respectively.

Binance introduced this mechanism to ensure greater transparency of its funds. The main reason for this move is, of course, the November collapse of another major exchange, specifically FTX. It was also intended to strengthen the trust of the cryptocurrency community towards the platform. However, many experts deny the use of this method. They indicate a lack of information regarding, among others, the use of leverage by this crypto exchange.

Binance reported in February that their reserve report “uses Merkle Trees to aggregate data on the blockchain, so all users can have complete peace of mind knowing that their assets are held 1:1 in our custody for them.” Merkle Trees enable fast and secure content verification in large datasets, as well as a high level of consistency.

Moreover, last month the exchange updated its Proof-of-Reserves system. Following this fact, the Zero Knowledge-Snark system was implemented, which was supposed to "increase the privacy and security of user data during the verification process."