12/31/2023 0 Comments Binance walletWe’ve seen external sources making huge leaps to conclusions based on flawed observations about assets’ movement on the blockchain. One significant source of interest has been in the movement of funds across blockchain wallets, which is the subject of some recent “analyses” that appeared in the media. And, as the industry’s leading exchange, Binance has gotten its fair share of tough questions. No company, particularly one that’s trusted with people’s money, should ever be allowed to operate with impunity. Since the implosion of FTX, our industry has been subject to a lot of scrutiny. Our response here is designed to engage and educate both users and the media as best we can. But not having the full picture of how our processes work is leading some reporters to incorrect conclusions. We welcome scrutiny – it makes us and the industry stronger. We keep an internal ledger that records exactly how much each of our users is entitled to - all verifiable through our proof-of-reserves system. However, Binance has decided that regardless of the bad press, it will not abandon its commitment to the transparency that blockchain embodies. To avoid scrutiny, some exchanges, such as FTX, have decided in the past to keep many of their wallet addresses secret. Large crypto exchanges run sophisticated wallet management systems that have to operate dynamically with cold and hot wallets to ensure both liquidity and security. These false conclusions fuel conspiracy theories that are often accepted at face value due to the limited understanding that most media have of the blockchain and how crypto exchanges ensure smooth operations and liquidity and guard users from security threats. Some media publications have recently taken to publishing reports where massive leaps to conclusions are made based on incorrect interpretations of the blockchain data. In the spirit of blockchain’s transparency, Binance publishes its cold and hot wallet addresses, which allows outsiders to view the exchange’s core wallet operations. It ensures that this new financial system is open to the scrutiny of users across the globe – unlike traditional finance, where corruption and criminal activity can go undetected for decades. The transparency of blockchain is a feature, not a bug.
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