- A Bloomberg report points out that Binance failed to separate users’ funds from their collateral.
- BNB seems to have reacted negatively to the news as the loss of value was minimal.
On January 24th, Bloomberg published an article detailing how Binance holds collateral with users and backs pegged tokens.According to Bloomberg, the exchange issues 94 Binance tokens. Nearly half the reserves of Peg Tokens (B Tokens) are held in a cold wallet known as Binance 8.
Read Binance Coin (BNB) Price Prediction 2023-24
Wallets hold more tokens than the number of B-Tokens in circulation. As Bloomberg points out, if the collateral is mixed with the customer’s tokens, which is unlikely given the tokens are meant to be backed one-to-one with her, This is a problem.
binance chaos
The alleged mix-up, confirmed by an unnamed Binance spokesperson, has the effect of making the evidence of reserves dubious. To support non-native tokens. This suggests that reserves can easily be inflated as there is no clear distinction between the amount of real user assets and pegged tokens generated by exchanges.
This month is not the first time Binance and its holdings have been in the spotlight. Earlier this month, it was reported that his BUSD, another Binance native asset, was under-collateralized.
Binance alluded to it in a blog post, which was widely reported. The exchange blamed the bug in question. The article spread fear, uncertainty and doubt (FUD) about cryptocurrency exchanges and their native coins. Will history repeat itself here?
How will BNB react?
At the time of this writing, Binance was trading around $300. The asset’s daily timeframe chart showed that it closed with a loss on the previous trading day. Despite the small loss, the previous trading period he finished at 1.57%. But as of this writing, it’s up about 0.2%.
Source: Trading View
The Asset Relative Strength Index showed that the RSI line is still moving in a bullish direction while continuing above 60. Additionally, the positive DI and signal (green and yellow) lines of the directional migration index continued to exceed 20. (DMI) . RSI and DMI positions confirm the current bullish trend of BNB coin.
How much is 1,10,100 BNB worth today?
holders are still profitable
Regardless, BNB holders have remained profitable over the past 30 days. According to Santiment’s 30-day Market Value to Realized Value ratio (MVRV), BNB was still making more than 6% of his profit.
Source: Santimento
There are currently no obvious signs of FUD around the Binance (BNB) cryptocurrency. However, exchanges can get a lot of bad press before native tokens, especially BNB, suffer.
