On-Chain Data Shows Binance Isn’t the Next FTX

Joshua Ramos
binance ftx ftt CZ SBF
Source: Blockworks.co

Seoul-Based analytics firm, CryptoQuant, has released brand new on-chain data that shows Binance isn’t behaving like the next FTX. The collapse of the latter has led many to fear the dealings of exchanges. However, the metrics clearly show that they are not one and the same.

The data has come in reference to the newly released proof-of-reserves audit from Binance. Moreover, CryptoQuant is clear in its assessment that the largest cryptocurrency exchange platform by volume is overcollateralized.

Binance Halts FTX Token Deposits as Suspicious Movement of $407M FTX Happen
Source: The Economic Times

Data Shows Stark Difference Between Binance and FTX

The collapse of FTX, one of the world’s premiere exchange platforms, has spurned a renewed fear and volatility within the market. Subsequently, the arrest of founder and former CEO, Sam Bankman-Fried, has only increased customer concern. Leading many to target their fearful questions toward the largest competitor to the now-bankrupt platform.

Binance has had an interesting couple of days, with the pausing of withdrawals and potential DOJ investigations on its ledger. Now, however, data on the recent audits done by the platform has shown that the fear of consumers may be misplaced.

Binance Experiences Abnormal Price Movements, CZ Says its Just Market Behavior
Source: The Economic Times

Analytics firm CryptoQuant has released on-chain data that shows Binance isn’t the next FTX. Moreover, concluding that the behavior of the two exchanges was in stark contrast to one another.

CryptoQuant stated, “At the time Binance’s Proof of Reserves report was conducted, CryptoQuant’s estimate of Binance’s BTC reserves liabilities) was 591,939 BTC. This compares to the PoR report’s Customer Liability Report balance of 597,602 BTC. We can see that CryptoQuant data covered 99% of Binance’s Liabilities.”

Binance Discloses Hot and Cold Wallet Balances
Source: Mint

The firm continued to note that Binance’s collateralization is 101% when considering both the assets and debtors of the platform. Additionally, citing on-chain data, it stated that Binance is not finding the same volume of trades that FTX had experienced prior to its bankruptcy. Conclusively saying that the increase in withdrawals is small compared to the platform’s reserves.