Binance Denies Asset Sell-off Rumors, Highlights Strategic Treasury Adjustments
- Binance clarifies that recent asset shifts were part of internal treasury management, not sales.
- Binances USDC holdings surged by over $1 billion, raising its collateralization above 40%.
- Binance assures users that all funds remain SAFU, despite asset reductions in Bitcoin and Ethereum.
In a public statement Binance revealed that it had maintained all its assets after rumors emerged about its balance sheet adjustments. The adjustments within the exchange served treasury management purposes to improve financial transparency. The exchange officials explained on Feb. 11 that their substantial modifications to Bitcoin and Ethereum holdings were from internal accounting movements instead of asset sales.
Binance Customer Support clarified that asset liquidation did not occur since internal accounting adjustments needed some assets to enhance financial reporting methodologies. The exchange assured its users through public statements that all customer assets were SAFU (Secure Asset Fund for Users) program.
Asset Shifts and Clarification of Funds
The rumors about asset sales circulated through social media platform X when Bitcoin and Ethereum holdings showed significant drops. The analyst AB Kuang.Dong stated that the exchanges reduced holdings came from previous operational profits instead of user funds. Dong confirmed that the majority of these assets had been transformed into USDC stablecoins. The market value of Binance Coin BNB fell by 16.6%, while Bitcoin and Ethereum experienced significantly larger drops in value.
The exchange internally altered its financial structure by transferring funds within its operations rather than selling assets. The reduced reserves corresponded to market volatility occurring in January, which resulted in numerous cryptocurrencies reaching their highest values ever. Binance adjusted its assets because of significant market price changes.
Changes in Binances Proof of Reserves
The January 2025 proof of reserves report from the exchange showed assets that surpassed the 100% customer guarantee. The exchange surplus decreased substantially between January 31 and February 1, 2025. During that period, the value of Bitcoin and Ethereum experienced rapid devaluation, leading to their collateralization rates reaching 0.01 percent. Binance Coin (BNB) outperformed other assets by reaching up to 12.37% collateral while remaining strong in its position.
Funds stored by the exchange in USDC increased substantially, while their major cryptocurrency holdings decreased in the same timeframe. USDC deposits by the exchange exceeded $1 billion, elevating its overall collateralization ratio beyond 40%. The exchange demonstrates its growing affinity for stablecoins through this trend since stablecoins deliver better value stability during market uncertainties.
Despite the worries surrounding its changed reserve amounts, it maintains confidence in its financial stability. The company officially announced that the alignments followed standard accounting procedures and that no user assets were impacted.
Read more: https://www.tronweekly.com/binance-denies-asset-sell-off-rumors/
Text source: TronWeekly
