Lately, Fear, Uncertainty, and Doubt (FUD) against Binance have grown considerably. It is being spread from different perspectives. The exchange takes the concept of openness and transparency very seriously and hopes to drastically prevent misleading information from being spread unnecessarily. Furthermore, the company recently took a step forward and eliminated uncertainty by answering several questions.
Binance Eliminates Uncertainty!
The areas the exchange talked about have been mentioned below.
1. Temporary Suspension of Withdrawal of USDC
Back in September this year, Binance announced that users’ USDC, USDP, and TUSD stablecoins would automatically convert to BUSD on a 1:1 ratio. USDC no longer exists on the platform. Similarly, all other stablecoin pairs can be withdrawn on a 1:1 pair. On the other hand, in case there’s a large-scale USDC withdrawal, the platform would convert BUSD to USDC first.
2. Binance Doesn’t have Enough reserves for Users to Withdraw Coins
The exchange assured its users that they have the freedom to withdraw their assets whenever they want. The main source of the platform’s revenue is the transaction fees it charges. The company’s assets are entirely separated from the assets of the users.
3. Mazars and Big Four Accounting Firms Refusing to Serve the Exchange
Binance clarified that Mazars quit working with all crypto-based companies. As long as accounting firms are concerned, it often becomes difficult for them to analyze reserve assets on the chain of encrypted exchanges. However, verifying the reserve assets on the chain differs from what the platform asks for.
4. The Launch of BTC Verification Only
Binance claims that BTC verification is simply the first step. It would be used to complete an on-chain verification of countless currencies on an urgent basis. On the other hand, users could even pay attention to the Binance Asset Reserve Proof System.
5. Binance Refusing to Disclose Financial Statements
As long as the disclosure of detailed financial statements is concerned, Binance has mentioned two reasons why they’re unnecessary. First, disclosing financial statements is limited to listed companies only. The exchange doesn’t need to be disclosed as it is a private organization. Secondly, the platform doesn’t need external financing in any way possible.
6. Investigations Into Binance
There’s little to no reason for anyone to investigate Binance. The platform holds valid licenses for operating in countless countries around the world. In addition, it even considers it a priority to fight crime simultaneously. Also, the security team at the exchange works closely with law enforcement agencies.
7. Binance Destroyed FTX
The exchange made it pretty clear that it had nothing to do with the collapse of FTX. Whatever happened to the exchange was purely a result of the mismanagement of internal controls and customer assets.