Binance, the world’s largest cryptocurrency exchange platform, has hit back at critics it claims have spread fear, uncertainty, and doubt (FUD) over its operations in a recent blog post.
In the post, it addressed seven key issues as it remains under severe scrutiny due to what it states are accusers that would like to see the exchange fail.
It aimed to firstly explain concerns over the stablecoin USD Coin (USDC), which was suspended earlier in December. A spokesperson from Binance said it wanted to consolidate all stablecoins to the ones with the most liquidity, including its native Binance USD (BUSD).
It also responded to claims it did not have sufficient liquidity to allow users to continue withdrawals.
According to the Chinese firm, Binance kept sufficient reserves between 12 and 14 December, with net withdrawals topping $6 billion at the time.
In a subsequent audit, CryptoQuant later confirmed Binance reserves were roughly 99 percent accurate. The latter confirmed it had entered talks with firms to provide services to verify reserves, adding that the world’s Big Four—Deloitte, KPMG, Ernst and Young (EY), and PricewaterhouseCoopers (PwC)–could not properly audit encrypted company reserves.
According to Binance’s fourth counterpoint, it addressed why it provided just Bitcoin (BTC) verification, stating it “takes the most cautious attitude towards” work involving user assets.
Due to the massive number of currencies, volumes, teams, and reserves needed to conduct verification processes, it needed to carefully conduct such verifications. The company added it did not have to disclose financial information as it was a private firm.
It also added: “Binance does not need to disclose detailed financial status for two reasons: First, listed companies must disclose company financial details to their investors, but Binance is a private company, not a listed company; second, Binance is financially healthy [and] self-sufficient, [has] no external financing needs and external investors, and no intention to go public at this stage.”
Citing a Reuters report, it stated in its sixth counterargument that mainstream media sources stated “ambiguities” and accused readers of only seeing “eye-catching headlines.”
It assured that it had the world’s largest number of approvals and licences, and aimed to tackle crime, responding to over 47,000 requests from law enforcement agencies since last year.
Concluding, Binance hit back at firms claiming it had “destroyed FTX,” stating the latter had “destroyed itself” due to misappropriation of user assets, citing a 6 December tweet from company chief executive Changpeng Zhao (CZ).
It said: Binance will not regard other exchanges as ‘competitors’. The current industry touches less than 6% of the population. We are more focused on continuously promoting and expanding industry adoption. We also hope to see more exchanges, blockchain, Wallet, etc. coexist in this ecosystem, so that more people can enter the field of blockchain cryptocurrency, without spending time and resources on any unhealthy ‘competition’ within the existing scope.”
