Binance’s Transparency Initiative Highlights Strong Liquidity for XRP and SHIB Tokens through Proof-of-Reserve (PoR) Figures
Binance, the largest cryptocurrency exchange in terms of daily trading volume, has released its latest Proof-of-Reserve (PoR) figures, showcasing impressive liquidity for XRP and Shiba Inu (SHIB) tokens, among others. This transparency initiative was launched by Binance following the collapse of FTX Derivatives Exchange in November last year, which brought new realities to the forefront of crypto trading platforms.
Binance’s PoR Figures Demonstrate Strong Liquidity Ratios For XRP And Shib Tokens
The updated PoR marks the eighth publication since Binance began this transparency move. Based on the data provided, the cumulative balance of XRP held by customers amounts to 2,594,820,681.419 units, whereas Binance’s own net balance for XRP is recorded at 2,696,455,113.87 units.
This reveals an XRP ratio of 103.92%, indicating that the trading platform is adequately liquid to fulfill any customer obligations. Similarly, for Shiba Inu (SHIB), Binance’s balance of the memecoin is at 79,148,840,350,012.94 units, surpassing the customer balance of 77,062,679,485,107.72 units, resulting in a SHIB ratio of 102.71%.
Binance’s consistent publication of PoR aims to demonstrate to investors that their funds can be fully redeemed at any given time, regardless of the circumstances. The fear of exchanges commingling customer funds, as witnessed with FTX, has led to an increased embrace of self-custody solutions. Initiatives such as Binance’s PoR can help restore trust in exchanges by highlighting their commitment to maintaining customer funds separately.
In addition to XRP and SHIB, Binance holds a strong position in Bitcoin (BTC) and Ethereum (ETH), among other major digital currencies. The latest update reveals that Binance’s customer Bitcoin balance is at 592,457.382 units, while the exchange’s balance stands at 617,960.43 units. This underscores the robust liquidity of Binance in the largest digital currency market.
Binance’s dedication to transparency and maintaining robust reserves reassures investors and strengthens trust in the exchange. By providing regular updates on token balances and demonstrating liquidity, Binance sets itself apart as a reliable platform in the evolving crypto landscape.