13. Juli 2023

Binance.US BCH Supply Doubts: Crypto Community Unconvinced by FUD Claims

Von admin

• Binance.US sparked fears over its Bitcoin Cash reserves when they reported a “temporary shortage” in native Bitcoin Cash (BCH).
• The crypto community has been scrutinizing the exchange’s response, and Binance.US attempted to dismiss resulting speculations as „FUD“.
• Data from a wallet address allegedly serving as Binance.US’ BCH hot wallet showed that it had plummeted to zero when the exchange claimed the sweeper had failed, raising further doubts about their explanation.

Binance.US Sparks Fears Over Bitcoin Cash Reserves

Binance.US found itself at the center of controversy over its Bitcoin Cash reserves on July 7th, when they announced a “temporary shortage” in native Bitcoin Cash (BCH). This caused much speculation and doubt among the crypto community, leading many to question the exchange’s response.

Binance.US Dismisses Concerns as FUD

In an attempt to quell these doubts, Binance.US dismissed them as false news or „FUD“ designed to spread panic on July 11th via Twitter statement . They asserted that they maintain a 1:1 reserve for all BCH held on its platform, claiming that any issue was due to a “technical issue” with their deposit sweeping system rather than a lack of reserves.

Data From Wallet Address Raises Further Doubts

However, this explanation did not hold up under scrutiny from members of the crypto community who shared data from what appeared to be Binance.US‘ BCH hot wallet address . Adam Cochran from Cinneamhain Ventures pointed out that this wallet balance had plummeted to zero when the exchange claimed there was just an issue with sweeps – calling into question whether or not this was actually true.

Growing Scrutiny Over Exchange Reserves

The growing uncertainty raises questions regarding other exchanges‘ reserves and where customer funds are actually stored – echoing suspicions raised after QuadrigaCX’s sudden collapse in 2019 . As such incidents become more frequent, users may become increasingly wary about trusting exchanges with large amounts of funds without strong evidence of secure storage and proper risk management protocols being followed.

Conclusion

Although Binance US has tried to dismiss these concerns over its Bitcoin Cash reserves as FUD, it seems likely that customers will continue questioning their response until further details are made available or proven true through independent audit reports. As such instances become more frequent within the industry, customers will need greater assurances that their funds are safely stored before entrusting exchanges with large sums of money