Investing.com – Binance recently shared wallet data as evidence of a backup. Since then, the wallets where Binance holds its assets have been closely watched.
After the sudden collapse of the FTX platform, Binance introduced a Proof of Reserve mechanism to establish confidence in the market and highlight transparency, and later disclosed the wallet addresses where the platform held its assets. This move from Binance was followed by other operations in the following days.
In the latest development, which is reflected in the agenda, the outflow of $2.7 billion from the wallet provided by the world’s largest cryptocurrency exchange as proof of the existence of the reserve caused negative comments by the cryptocurrency community. The platform administrators who made a statement about the transfer indicated that there was nothing to worry about and explained that the funds were transferred to a cold wallet on the TRX network.
After this transfer, speculation quickly increased in the market, and there were comments that Binance did not have sufficient proof of reserve. On the other hand, users following the wallet witnessed the transfer of $2.7 billion a day after Binance published the details of its wallets. Of this amount, US$200 million was subsequently returned, while US$2.5 billion remained in a previously unidentified wallet.
Why did the cryptocurrency community react to this transfer?
Although there was a statement from Binance that the move was an insider transaction, this did not please some in the crypto community. Because in the comments on the statement, some users pointed to the previous comment of the CEO of Binance in which he said: “If a platform transfers large amounts of cryptocurrency funds without specifying wallet addresses, that is a question mark.”
The founder of DOGE believes it will be game over in the cryptocurrency markets if Binance or Tether go bankrupt.
Billy Marcus, founder of Dogecoin, shared his view on the recent market crash in a series of tweets he posted on Twitter.
Marcus indicated the real danger by saying that the industry is still suffering from an unprecedented crisis due to the successive bankruptcies.
Billy Marcus commented that if Binance or Tether goes bankrupt, it will be game over in the cryptocurrency markets. Besides, Abe noted his happiness that the recent crises have created awareness among cryptocurrency investors. Marcus said he was relieved that users were beginning to realize that custodial services on centralized exchanges were not secure.
The founder’s comments also received approval from Jack Dorsey, the former CEO of Twitter. After his comment, Billy Marcus felt the need to explain the phrase “game over” and said that this sentence meant a severe market crash.
Stating that cryptocurrency markets will continue to be a part of our lives, Marcus mentioned that this market is not just speculative, but has an important function as a decentralized money transfer system.