🚨 Crypto bros: “Trust me, bro, your funds are safe.”
😨 Users: “Umm... FTX said that too.”
🛡️ Binance: “Hold my Merkle tree.”
That’s where Proof of Reserves (PoR) comes in—so you don’t have to trust blindly. It’s Binance’s way of saying, “Here’s the math, check it yourself.”
Why Should You Care About PoR?
💀 Prevents Crypto Ponzi Schemes – No funny business, just cold, hard reserves.
😌 Gives You Peace of Mind – No need to spam “SAFU?” in Telegram.
📜 Regulators Be Watching – Keeps the suits happy so we don’t get rugged.
Binance’s Latest PoR Report (Because Receipts Matter 📜)
Here’s how much Binance actually holds vs. what users have deposited:
BTC Ratio
103.79%
Customer Net Balances: 575,852.891
Binance Net Balances: 597,658.074
ETH Ratio
106.56%
Customer Net Balances: 4,002,782.994
Binance Net Balances: 4,265,238.882
BNB Ratio
106.04%
Customer Net Balances: 31,999,106.454
Binance Net Balances: 33,932,195.889
USDT Ratio
123.20%
Customer Net Balances: 16,855,152,494.241
Binance Net Balances: 20,765,933,978.501
BUSD Ratio
167.91%
Customer Net Balances: 259,864,509.361
Binance Net Balances: 436,326,454.403
USDC Ratio
117.88%
Customer Net Balances: 740,598,563.358
Binance Net Balances: 872,983,723.394
LTC Ratio
100.77%
Customer Net Balances: 5,757,036.348
Binance Net Balances: 5,801,547.958
XRP Ratio
104.26%
Customer Net Balances: 2,743,502,067.169
Binance Net Balances: 2,860,446,327.208
📌 Translation: Binance isn’t running on “trust me, bro” economics. They actually have more reserves than user deposits. Your bags = backed.
How Binance Uses the Merkle Tree to Keep It 100% Transparent 🌳
Merkle Tree? Sounds Fancy. But it’s basically a cryptographic way to verify that Binance actually holds the assets they claim—without exposing user data.
🔍 How It Works (In Simple Terms):
1️⃣ Snapshot – Binance takes a pic 📸 of all user balances.
2️⃣ Hash It Up – Your balance is turned into a unique digital fingerprint. 🔢
3️⃣ Tree Formation – All fingerprints are combined until we get a final Merkle Root. 🌳
4️⃣ Public Proof – Binance publishes the root for anyone to check. 👀
5️⃣ Self-Verification – You can confirm your funds are in there without exposing your wallet details. 🔒
🤓 Analogy: Imagine all Binance users got a digital receipt 🧾. These receipts are combined into one big super receipt 📜. If your individual receipt is in the final record, you know your funds exist.
But Wait, There’s More: Third-Party Audits 🔍
Because let’s be real—if Binance only verified itself, you’d call it sus. That’s why external auditors step in to:
✅ Verify Binance’s total reserves.
✅ Match user deposits with real assets.
✅ Ensure Binance isn’t covering losses with funny money.
Final Thoughts: Is PoR Enough?
👀 Some say PoR is a great start but doesn’t show liabilities (like debts an exchange owes). Others argue it’s better than nothing.
🔥 What do you think? Is PoR enough, or do we need more? Drop your thoughts below! 🗣️👇
