• Binance.US has been accused of having a „temporary shortage“ in native Bitcoin Cash (BCH) reserves.
• The crypto exchange has attempted to dismiss these concerns as FUD, but the crypto community is still asking questions.
• Popular Cinneamhain Ventures partner Adam Cochran highlighted that Binance.US’s hot wallet balance had dropped to zero when they claimed their sweeper system had failed.
Binance.US and Bitcoin Cash Supply
Binance.US has found itself at the center of controversy over its Bitcoin Cash (BCH) reserves after a July 7 notice on their status page expressed a “temporary shortage” in available native BCH tokens for customers to withdraw from the platform. The crypto exchange tried to dismiss these concerns as FUD, but popular Cinneamhain Ventures partner Adam Cochran highlighted that Binance.US’s hot wallet balance had dropped to zero when they claimed their sweeper system had failed, raising further questions about the true state of the exchange’s supply of BCH tokens.
Questions Surrounding Binance US
In spite of these doubts, Binance US maintained that it maintains a 1:1 reserve for all BCH held on its platform in response to speculation surrounding its ability to maintain adequate supplies for customers wishing to make withdrawals from the exchange. This prompted some members of the crypto community and industry analysts to question whether or not this was truly an issue with their deposit sweeping system or evidence of an actual lack of reserves on behalf of the exchange, given that there should not be such a disparity between available native BCH tokens and those stored in wallets connected to the Bitcoin and Binance Smart Chain networks associated with it.
Adam Cochran’s Claims
In order to provide proof that something was amiss with regards to how much native Bitcoin Cash was actually being held by exchanges, Adam Cochran provided data from an address allegedly serving as one of Binance US‘ hot wallets which showed that it had gone down from non-zero levels before reaching zero coinciding with when the withdrawal pause went into effect raising further suspicions about what was going on behind closed doors at one of America’s largest cryptocurrency exchanges by trading volume .
Cochran & Community Reaction
Commenting on this information, Cochran argued that there seemed more than just an issue with sweeps taking place since no outbound transactions were taking place from this wallet meaning either they weren’t actively sweeping funds or simply hadn’t done so recently enough leading many within the community believe something else may have been going on leading them call for more transparency regarding how much digital currency is actually being held by them especially given their size and impact upon U.S markets .
Conclusion
Ultimately, while neither party has provided hard evidence proving any wrongdoing or lack thereof due to legal reasons , it is clear that many within both inside and outside the space remain skeptical about what exactly happened here pointing towards potential need for greater oversight when it comes how much digital currency is actually held by major players such as exchanges like binance us who play significant roles within larger markets .