Crypto exchange Binance is moving to a semi-automatic reserve management to make its earlier proof of reserve more successful.
Binance made a move that changed the course of crypto exchanges with the bankruptcy of FTX. The popular crypto exchange has marked the beginning of a new era with its proof-of-reserve system. But this proof of reserve also brought problems due to some glitches and withdrawal of third-party controllers. In the midst of all these processes, Binance makes a new move in reserve management, which is partially deficient, and switches to a semi-automatic process.
Binance Draws Attention With Its New Reserve Update
Popular crypto exchange Binance ran into many problems with its previous proof-of-reserve system and tracking. Prominent among these were the inaccuracies in the collateral of more than 40 of the 94 Binance-peg tokens. In addition, third-party firms that audited evidence of reserve had also decided to withdraw.
Binance stated that a semi-automated process will begin in reserve management, where reserves are mixed with other client funds and partially deficient.
According to a report by Bloomberg, an authorized person stated that Binance has now set up a semi-automated process that ensures “transparent support of B-Tokens at all times.” Thanks to this system, it was stated that the issuance of new coins will only be carried out after adding collateral to the relevant wallet. In addition, these reserves were distributed to 36 private security wallets.
According to the Bloomberg news, the spokesperson, who shared his views on the subject, said;
“For the past few weeks, we’ve been moving collateralized assets to private wallets, one per network, to make the 1:1 support clearly visible. This collateral always supported our users’ B-Token assets and was withdrawable at any time. We now display this collateral on-chain in private wallets where it will stay until needed.
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