Binance Accidentally Combines User Funds And B-Token Collateral
Key Points:
- Binance, the biggest cryptocurrency exchange in the world, has admitted that it unintentionally kept customer cash and token reserves in the same wallet.
- Binance 8 has a reserve of about 22,700% for OriginToken’s OGN. This suggests that user assets from the exchange are also included in the wallet.
- It is challenging to determine whether Binance has sufficient reserves to support the B-Tokens it has issued because B-Token collateral and user cash are mixed together.
According to a Bloomberg story, Binance, the biggest cryptocurrency exchange in the world, has admitted that it unintentionally kept customer cash and token reserves in the same wallet.
According to BNB’s website, reserves for over half of the 94 tokens it has issued, known as “B-Tokens,” are kept in a single wallet dubbed “Binance 8.” The wallet has more assets in reserve than are needed to serve as collateral for the B-Tokens that have been issued.
For instance, as of January 23, Binance 8 has a reserve of about 22,700% for OriginToken’s OGN. This suggests that user assets from the exchange are also included in the wallet.
To enable their use on other blockchains, such as the BNB Smart Chain, BNB releases its own version of cryptocurrencies like Ethereum (ETH), USD Coin (USDC), and others. These B-Tokens, which are backed by 1:1 reserves of the currencies they are based on, are known as Binance-pegged tokens.
Contrary to BNB’s own policies, B-Token collaterals should never be combined with client assets. a representative for BNB told Bloomberg:
“‘Binance 8’ is an exchange cold wallet. Collateral assets have previously been moved into this wallet in error and referenced accordingly on the B-Token Proof of Collateral page.
It is challenging to determine whether BNB has sufficient reserves to support the B-Tokens it has issued because B-Token collateral and user cash are mixed together.
According to the spokesperson for BNB, all user assets held by the exchange are always “backed 1:1.” The representative blamed “past operational oversights” for the aforementioned “error,” but she did not specify when the problem was discovered.
According to Bloomberg, the 41 B-Tokens that Binance owns as collateral are worth approximately $539 million and are stored in the Binance 8 wallet. According to the research, BNB 8 has more than $16.5 billion in various crypto assets, including $1.8 billion in B-Token-related assets.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
Annie
Coincu News
Author
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Binance Accidentally Combines User Funds And B-Token Collateral
Key Points:
- Binance, the biggest cryptocurrency exchange in the world, has admitted that it unintentionally kept customer cash and token reserves in the same wallet.
- Binance 8 has a reserve of about 22,700% for OriginToken’s OGN. This suggests that user assets from the exchange are also included in the wallet.
- It is challenging to determine whether Binance has sufficient reserves to support the B-Tokens it has issued because B-Token collateral and user cash are mixed together.
According to a Bloomberg story, Binance, the biggest cryptocurrency exchange in the world, has admitted that it unintentionally kept customer cash and token reserves in the same wallet.
According to BNB’s website, reserves for over half of the 94 tokens it has issued, known as “B-Tokens,” are kept in a single wallet dubbed “Binance 8.” The wallet has more assets in reserve than are needed to serve as collateral for the B-Tokens that have been issued.
For instance, as of January 23, Binance 8 has a reserve of about 22,700% for OriginToken’s OGN. This suggests that user assets from the exchange are also included in the wallet.
To enable their use on other blockchains, such as the BNB Smart Chain, BNB releases its own version of cryptocurrencies like Ethereum (ETH), USD Coin (USDC), and others. These B-Tokens, which are backed by 1:1 reserves of the currencies they are based on, are known as Binance-pegged tokens.
Contrary to BNB’s own policies, B-Token collaterals should never be combined with client assets. a representative for BNB told Bloomberg:
“‘Binance 8’ is an exchange cold wallet. Collateral assets have previously been moved into this wallet in error and referenced accordingly on the B-Token Proof of Collateral page.
It is challenging to determine whether BNB has sufficient reserves to support the B-Tokens it has issued because B-Token collateral and user cash are mixed together.
According to the spokesperson for BNB, all user assets held by the exchange are always “backed 1:1.” The representative blamed “past operational oversights” for the aforementioned “error,” but she did not specify when the problem was discovered.
According to Bloomberg, the 41 B-Tokens that Binance owns as collateral are worth approximately $539 million and are stored in the Binance 8 wallet. According to the research, BNB 8 has more than $16.5 billion in various crypto assets, including $1.8 billion in B-Token-related assets.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
Annie
Coincu News
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