Binance Conducts 11th Proof of Reserve Amid Regulatory Pressure

Binance’s makes its 11th Proof of Reserve mmidst regulatory pressure.
To BNB holders and the crypto community BNB’s price outlook raises concerns.
Crypto market data suggests a potential decline for Binance Coin (BNB).

Binance, one of the world’s largest crypto exchanges, has been actively working to build trust with its users amidst increasing regulatory scrutiny. Their latest effort involves the 11th snapshot of their proof of reserves, conducted at the beginning of this month.

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In detail, the exchange disclosed holdings of 588,000 BTC, 3.83 million ETH, and a significant 15.31 billion USDT assets.

While these figures may appear modest given Binance’s high trading volumes, it’s crucial to note that the snapshot accounts for assets held in custody on behalf of users. With more individuals favoring self-custody solutions, Binance emphasizes that those relying on its custody services have their assets backed at a 1:1 ratio.

Shifting focus to Binance Coin (BNB), recent announcements about proof of reserves are unlikely to have a substantial impact on its price. As we can see from the post above, the response to it shows that the community isn’t very impressed by it.

However, BNB has shown signs of accumulation since August 22nd. While this might suggest a bullish scenario, a similar pattern was observed between June 12th and August 11th, preceding a decline.

At the time of reporting, BNB traded at $211, down over 5% from its weekly high. Historical patterns extend to indicators like the Relative Strength Index (RSI) and the Money Flow Index (MFI), resembling the June-August phase.

On-chain data reveals waning market confidence, implying that trader sentiment may not support a bullish outcome. BNB’s Weighed Sentiment metric has decreased significantly since late September, and on-chain volume indicates a lack of enthusiasm.

In summary, there’s a notable possibility of history repeating itself if the current market conditions persist. This could lead to a potential 14% decline in BNB’s value, reminiscent of the June-August crash. Even a 5% drop from its current level could push BNB below the $200 mark.

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Lauren Cole

A focused and vigilant storyteller for all things blockchain and cryptocurrency. Besides consuming every piece of literature about the metaverse, she can often be found at industry convections looking for the latest scoop.