Over the course of 2022, Binance found itself embroiled in several crypto scandals. To restore its image, it then decides to adopt a completely new strategy. Reference is made to the semi-automated management process it has just put in place.
A semi-automated management system to overcome storage problems
Clearly, Binance is not at the end of its troubles. During this month of February, the crypto exchange was forced to suspend its stablecoin: the BUSD. Long before that, it had to face a lot of criticism from its users and crypto regulators. The reason: poor management of its token reserves.
Indeed, Binance mistakenly stored nearly 94 B-Tokens in a single wallet. The latter had $16 billion in reserves. To prevent another error from happening again, the crypto exchange has decided to implement a semi-automated management system.
Binance wants to improve its transparency policy
According Bloomberg and many other analysts, this move would have a very specific objective: to improve Binance’s transparency policy. The semi-automated management system would not only store B-Tokens transparently. It would also help Binance to respond quickly in the event of an incident.
Also in this same vein, the crypto exchange has moved collateralized assets to dedicated wallets. According to the explanations of its spokesperson, There is a wallet for each network. It shows the 1:1 support of each asset.
“This collateral has always backed our users’ B-token assets and has always been available for withdrawal at any time. We now just show it on-chain in dedicated wallets where it will stay until needed,” he said.
The implementation of this semi-automated Binance token management system raises a lot of debate within the crypto community. Knowing that Binance’s latest PoR was not very convincing. To be continued…
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