An Examination of the Binance Proof-of-Reserves Report 

An-Examination-of-the-Binance-Proof-of-Reserves-Report

According to Binance's Proof-of-Reserve (PoR) report, the BTC liabilities, which are the deposits of customers, are collateralized by the assets of the exchange to a degree of 97%. Collateralization increases to 101% when the BTC lent to customers is accounted.

To evaluate the information contained in Binance's Proof-of-Reserves report, we compared the liabilities presented by Binance in the report to the on-chain metric data we have at CryptoQuant regarding Binance's BTC Reserves (our estimation of the deposits made by Binance's customers). We discovered that the liabilities stated by Binance are highly similar to our assessment (99%).

Additionally, Binance possesses an adequate "Clean Reserve," which indicates that the proportion of its own token, BNB, to the exchange's overall assets is still relatively low.

Our analysis does not favor Binance or the BSC/BNB ecosystem. Our on-chain data shows that the amount of BTC Binance says it owns as liabilities makes sense.

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