After the FTX Collapse, it has become challenging for cryptocurrency investors and traders to place their funds on any cryptocurrency exchange. As a result, trust in the entire cryptocurrency exchanges has decreased.
The world’s largest cryptocurrency exchange in terms of trading volume and user base, Binance, is currently being put to the test, and there is a great deal of speculation about the likelihood of its bankruptcy. Listed below are a few quick facts on Binance’s FUD:
1) Binance’s Mazars Auditing FUD
Mazars has put a hold on auditing for EVERY cryptocurrency exchange, not just Binance. It is hasty and desperate to say that Binance is bankrupt based on Mazars’ findings.
When auditing firms choose not to collaborate with cryptocurrency businesses, it does not always mean that those businesses are failing financially in the same way as when banks choose not to interact with bitcoin users.
Binance, Kucoin, and Crypto.com were all subjected to an audit by Mazars. They ceased auditing each and every one of these transactions individually.
It’s possible that Mazars has reached the conclusion that continuing to perform crypto audits is too risky in light of the current circumstances.
2) Binance’s Insolvency FUD
According to the data on-chain, Binance currently has more than $55 billion in reserves. The truth of the matter is that it is possible to verify this on a blockchain.
Claims that Binance is experiencing a “bank run” are, to put it mildly, ludicrous when only a small percentage of the available funds have been removed.
3) BUSD FUD
BUSD is NOT issued by Binance But by Paxos. The most recent piece of misinformation is that #Binance has a reserve problem because to the large amount of BUSD that it owns.
BUSD, which is issued by Paxos and backed by US dollars and T-bills, is regulated by the New York State Department of Financial Services, which also gave its approval for the currency (DFS) and Can be Verified Here.
Binance is Fine. Don’t Get Distracted by FUD