Aaryamann Shrivastava
FXStreet
- Binance unveils Bitcoin reserves worth $9.59 billion in BTC against $9.48 billion of customer balance.
- The exchange also announced the delisting of Serum's pairs with Bitcoin, USD and Tether, along with 16 other pairs.
- Serum price registered an almost 10% decline in the hours following the delisting, trading at $0.265.
Binance has been pushing the envelope of transparency and support towards the crypto space and developers, respectively. In line with the same, the cryptocurrency exchange came forward with its Proof of Reserves (PoR) System. However, in the interest of protecting its investors, it also took a step in a lesser favorable direction.
Binance and its Bitcoin Proof of Reserves
Binance and its CEO Chengpang Zhao (CZ) announced the release of its Proof of Reserves System (PoR) on Friday. The PoR is Binance's way of providing evidence for the fact that the exchange covers all of its users' assets 1:1.
Initially, the PoR has only been released for Bitcoin, but the exchange stated that updates about Ethereum (ETH), Tether (USDT), USD Coin (USDC), Binance USD (BUSD) and Binance Coin (BNB) would also be provided.
Binance’s Bitcoin Proof of Reserves
As per the data released by the exchange, Binance currently holds about $9.48 billion worth of BTC in the form of customer net balance. On the other hand, its on-chain reserves exceed $9.59 billion in value. This creates a 101% Reserve Ratio for the king coin, ensuring backup in case of a liquidity crisis that FTX faced, resulting in its eventual collapse.
Binance delists Serum
The downfall of FTX not only decimated the value of its native token FTT but also of Solana (SOL). A venture of its sister company Alameda Research, Solana hosts a ton of Decentralized Finance applications, one of which is Serum (SRM).
Earlier last week, the Solana Foundation announced that it held about 134.54 million SRM tokens, which are currently worth about $35.65 million. Soon after, the community decided to fork the project resulting in a 147% increase in price.
However, on Friday, Binance also announced the delisting of SRM pairs with BTC, USD and USDT, as well as 16 other token pairs. This led to a sudden decline in Serum price, bringing SRM's value down by almost 10% in 24 hours.
Trading at $0.265, SRM is nearing its immediate support at $0.261. A bounce off of this level would provide it with the bullishness SRM needs to flip $0.307 resistance into support and rally toward $0.34.
SRM/USDT 4-hour chart
Although, Serum price is still vulnerable to a fall due to recent developments. If SRM loses the support of $0.261, it could extend the decline to $0.193. Closing below this level would invalidate the bullish thesis, pushing the altcoin down to $0.133, resulting in an almost 50% crash.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Turn off Solana and win $400,000 - Solana Foundation executive announces offer
Solana has been touted as an Ethereum killer, but as with every blockchain in the crypto market, the network does not come without its fair share of issues. While many who get hacked or exploited deal with the issues after the fact, Solana intends to get a step ahead by making a very lucrative offer to white hat hackers.
Grayscale vs. SEC deadline: Commission faces a midnight Friday deadline to challenge August 29 loss
Grayscale Investments secured a resounding victory in its longstanding case against the US Securities and Exchange Commission in late August. The lawsuit started in October after the firm approached the D.C. Circuit Court pushing to have its Bitcoin Trust converted to an Exchange-traded fund.
Loom Network price hits strong weekly resistance after 32% surge as LOOM ranks high on Korea’s Upbit
Loom Network token is highly bullish, passing as a rather lucrative investment for scalping traders, buying and selling the asset within a short period to make small profits.
Voyager founder charged by CFTC for fraud and by FTC for misleading investors that lost $1 billion
Voyager was among the first crypto companies to collapse and file for bankruptcy in 2022. While the platform has been making efforts to return its customers' assets since then, it looks like the regulatory bodies are not willing to be patient.
Bitcoin: Can BTC bears challenge crypto’s 2023 bull rally?
Bitcoin (BTC) price is at a critical juncture in the weekly time frame, where bulls and bears are battling for control. However, a multi-time-frame analysis shows that BTC is bullish daily and is likely to rally higher.