Chanpeng “CZ” Zhao, CEO of binancestartled the market this Monday (28) by moving 127,000 units of bitcoins, or $2 billion at the time of the transaction. The movement was noticed earlier by the Whale Alert profile, which captures large onchain movements.
🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 127,351 #BTC (2,062,504,721 USD) transferred from #Binance to unknown wallethttps://t.co/zNYPuJuoRe
— Whale Alert (@whale_alert) November 28, 2022
Shortly after, the CEO took to Twitter to calm investors. CZ comments that the movement, made by the brokerage itself, is intended to prove to the auditor that Binance really controls that wallet and holds the amount indicated in the books.
This is part of the Proof-of-Reserve Audit. The auditor require us to send a specific amount to ourselves to show we control the wallet. And the rest goes to a Change Address, which is a new address. In this case, the Input tx is big, and so is the Change. Ignore FUD! https://t.co/36wUPphIZk pic.twitter.com/2NkH5L5J9j
— CZ 🔶 Binance (@cz_binance) November 28, 2022
“This is part of the Evidence of Reservation Audit. The auditor requires us to send a specific amount to ourselves to show that we control the portfolio. And the rest goes to a Change Address, which is a new address. In this case, the Input tx is large, as is the Change. Ignore FUD!” he says.
The brokerage firm’s “Proof of Reservation” system was launched this past Friday, and aims to encourage greater transparency among brokerages, especially after what happened with the FTX🇧🇷
However, there are users who believe that the system is not enough. For Kraken CEO Jesse Powell, without the intervention of an auditor to show liabilities, the system is just “bullshit without an auditor to make sure you don’t include accounts with negative balances,” as he puts it.
Bitso also criticizes the system and has established its own, called “Proof that Matters”🇧🇷 The race for transparency has been taking over the market narrative after the collapse of the second largest exchange in the world.
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Source: Moneytimes
I am an author and journalist with a focus on market news. I have worked for a global news website for the past two years, writing articles on a range of topics relating to the stock market. My work has been published in international publications and I have delivered talks at both academic institutions and business conferences around the world.
