- Binance denied promoting property, stating latest steadiness sheet adjustments had been inside treasury changes.
- Crypto reserves like Bitcoin and Ethereum dropped sharply, however Binance’s USDC holdings surged by over $1 billion.
- Analysts affirm the asset shift concerned previous income, not buyer funds, with BNB seeing the smallest discount.
Binance has pushed again in opposition to hypothesis that it’s offloading property, asserting that latest steadiness sheet adjustments are simply inside treasury changes—not liquidations.
On February 11, the alternate clarified to CryptoSlate that there have been no asset gross sales concerned. As an alternative, the fluctuations seen on-chain had been a part of a routine accounting course of.
A Binance spokesperson said:
“Binance isn’t promoting property. This was merely an adjustment within the Binance treasury’s accounting course of. Person funds are SAFU, as all the time.”
But, rumors about Binance dumping its holdings had already unfold throughout social media platform X. The hypothesis began after information confirmed a pointy 90% decline in its Bitcoin and Ethereum reserves all through January.
Asset Reshuffling, Not Liquidation
Crypto analyst AB Kuang Dong weighed in, explaining that the shifting property weren’t buyer funds however moderately previous income Binance had generated. A big chunk of those holdings had reportedly been transformed into USDC, with Binance Coin (BNB) experiencing the smallest discount—down simply 16.6%.
A CryptoSlate overview of Binance’s proof-of-reserves confirmed the development. On January 1, Binance confirmed a large asset surplus past the 100% buyer assure threshold. Main cryptocurrencies had been closely collateralized, with double-digit share buffers.
Nevertheless, by February 1, the state of affairs appeared completely different. The surplus collateral had shrunk significantly, with some property barely sustaining 0.01% in surplus. Solely BNB remained comparatively sturdy, retaining 12.37% in further collateral.
USDC Holdings Surge Amid Reserve Modifications
Regardless of the declining crypto reserves, Binance’s USDC holdings advised a unique story. Over the identical interval, its USDC steadiness surged by greater than $1 billion, bringing its collateralization charge previous 40%.
This shift in Binance’s reserve make-up suggests a strategic reallocation moderately than panic promoting. Whereas some merchants stay skeptical, others see it as an indication of Binance reinforcing stability in a risky market. Both means, the numbers don’t lie—Binance is transferring cash, simply not in the best way many had assumed.