Category: Binance

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Binance Crypto Exchange Crypto News FTX Kraken

Binance Releases Proof of Reserve System – Kraken CEO Unsatisfied

In the wake of the collapse of FTX, cryptocurrency exchanges are rushing to convince customers that they’re safe and not likely to suddenly collapse — at least not in the next few weeks. Recently large exchanges like Crypto.com and Kraken have released proof of their reserves, and now Binance is following suit. 

Last Friday, Binance announced its new proof of reserve system, which allows customers to verify that their funds have been included in the proof of reserves report by querying data in a Merkle tree. Binance claims this proves that customer funds are held on a full-reserve basis.

However, Binance’s new system has been met with criticism by the CEO of rival crypto exchange Kraken, Jesse Powell.

Powell referred to the system as “hand wavey bullshit” that provides nothing more than a cryptographic hash of an entry in a spreadsheet, which does nothing to show that Binance holds more assets than it owes.

Powell’s Criticism Explained

Powell said a meaningful proof of reserve audit must include all client liabilities with negative balances excluded, user-verifiable cryptographic proof that all accounts have been included in the audit, and cryptographic signatures verifying the exchange’s control over the wallets containing the assets.

Without this information, Powell said proofs of reserve such as those released by Binance are “worthless” and tell users nothing of value about an exchange’s financial position.

Powell’s Kraken exchange has implemented a similar Merkle tree-based proof of reserve system that he claims is more rigorous than that offered by Binance. However Kraken does acknowledge its system has some shortcomings of its own. 

Crypto Journalists Cop It

Binance wasn’t the only target in Powell’s sights: he also took aim at crypto journalists for failing to understand the flaws in Binance’s system.

Previously, Powell had criticised the Binance-owned crypto tracking website, CoinMarketCap, for its implementation of its new proof of reserves feature, which he says simply includes a list of wallets and does nothing to clarify if an exchange has more assets than liabilities. 

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Binance Football NFTs Sports

Cristiano Ronaldo Partners with Binance to Launch NFT Collection

Cristian Ronaldo, widely considered one of the greatest soccer players to ever lace up the boots, has partnered with cryptocurrency exchange Binance, to launch an NFT collection as part of an exclusive multi-year deal with the exchange. 

The collection will reportedly include seven animated statue NFTs depicting various pivotal moments in Ronaldo’s life and career, ranging from important events in his childhood in Portugal through to his most iconic footballing feats.

Collection to Introduce Fans to Web3

Binance Co-Founder He Yi said collaborations with high-profile figures like Ronaldo would help bring more people into Web3:

“We believe the metaverse and blockchain are the future of the internet…We are honored to collaborate with Cristiano to help more people understand blockchain and showcase how we are building Web3 infrastructure for the sports and entertainment industry.” 

He Yi, Binance

Since it launched in mid-2021, Binance’s NFT marketplace has sought to feature high-profile creators, with some of its earliest collections from popular musician Lewis Capaldi, and professional football stars Michael Owen and Alphonso Davies.

From Ronaldo’s perspective the collection is more about rewarding his loyal fans and thanking them for their years of support:

“It was important to me that we created something memorable and unique for my fans as they are such a big part of my success…With Binance, I was able to make something that not only captures the passion of the game but rewards fans for all the years of support.” 

Cristiano Ronaldo
Source: Binance

NFTs Include Additional Perks

The collection will include NFTs of four different rarity levels, from super super rare (SSR), through to normal (N). Depending on the rarity level of the NFT, buyers may receive additional perks such as:

  • A personal message from Ronaldo
  • Merchandise autographed by Ronaldo
  • Guaranteed access to future Ronaldo NFT collections
  • Complimentary mystery boxes for future Ronaldo NFT collections
  • Entry into giveaways for signed merchandise and other prizes

Ronaldo’s first NFT collection will launch at 9am UTC on November 18 and will be available only to Binance users. Subsequent Ronaldo NFT collections are planned to launch through Binance starting in 2023.

Engaging sports fans has been a popular application of NFTs, with collections released by the US National Basketball Association (NBA) and Australia’s AFL code this year.

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Binance Crypto News FTX

Binance Opts Not To Purchase FTX, Citing Significant Concerns Raised During Due Diligence

Binance, the world’s largest cryptocurrency exchange, has walked away from a deal to purchase cash-strapped rival FTX just one day after signing a non-binding letter of intent to acquire the stricken exchange.

The about-face came after Binance conducted its initial due diligence of FTX’s financial position and business practices, which sparked significant concerns. Binance CEO Changpeng Zhao, commonly referred to as CZ, retweeted a tweet from the Binance account on Wednesday declaring the deal was off:

“As a result of corporate due diligence, as well as the latest news reports regarding mishandled customer funds and alleged US agency investigations, we have decided that we will not pursue the potential acquisition of FTX.com”  

Binance

CZ Publicly Releases Letter to Binance Staff

Earlier on Wednesday CZ had tweeted an internal letter sent to Binance employees updating them on the FTX situation. In the letter CZ told his staff the due diligence for the deal was ongoing and they must not trade any FTT, presumably to avoid running afoul of regulators.

CZ also stressed in the letter that he had not masterminded FTX’s collapse, as some had speculated:

“We did not master plan this or anything related to it. It was less than 24 hrs ago that SBF called me. And before that, I had very little knowledge of the internal state of things at FTX.” 

Changpeng Zhao, Binance CEO

He went on to insist the collapse of one of Binance’s largest rivals should not be viewed as a win, and that it would have ongoing harmful consequences for investors and for the entire crypto space:

“FTX going down is not good for anyone in the industry. Do not view it as a “win for us”. User confidence is severely shaken. Regulations will scrutinize exchanges even more. Licenses around the globe will be harder to get.”

Changpeng Zhao, Binance CEO

Market Tanks In Reaction

The market’s reaction to the news that Binance would not be acquiring FTX has been swift and negative, with prices down virtually across the board. Unsurprisingly, the biggest losers have been those cryptocurrencies most closely linked to FTX. 

At the time of writing, data from CoinGecko showed FTT was down almost 90 percent since Tuesday, changing hands at US$2.47, down from US$22. Solana (SOL), which was heavily backed by FTX, was also hit hard, dropping around 51 percent since Wednesday.

Other major cryptocurrencies have also dropped considerably, with Bitcoin (BTC) down over 20 percent since Wednesday and Ethereum (ETH) down over 25 percent.

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Binance Crypto News FTX

Binance to Acquire FTX Following “Significant Liquidity Crunch”

Following days of rumours, heavyweight Twitter spats, and a frenzied bank run, Binance CEO Changpeng Zhao (CZ) has confirmed his exchange will fully acquire Sam Bankman-Fried’s (SBF) FTX exchange, pending proper due diligence. If this deal goes ahead as planned, it would see the two largest crypto exchanges in the world merge into a single entity.

CZ tweeted Tuesday that FTX had reached out to request help from Binance following what he described as “a significant liquidity crunch” triggered by a rush of customers withdrawing their funds from FTX. 

CZ agreed to offer assistance and stated: “to protect users, we signed a non-binding LOI (letter of intent), intending to fully acquire FTX.com.”

SBF Confirms Forced Sale

In a Twitter thread of his own, SBF confirmed the news and said the Binance takeover would ensure customers assets are protected.

Despite the tense exchanges between SBF and CZ over the past few days, SBF went out of his way to thank CZ for his help and praised him for the work he has done to grow the crypto industry.

SBF also clarified that Binance.us and FTX.us would be unaffected by this deal, noting that FTX.us continue to operate as normal.

How Did This Happen?

Somewhat ironically, FTX’s troubles really began on Sunday when CZ tweeted that Binance would be unloading its holdings of FTX’s exchange token FTT, valued at around US$580 million, due to what he described as “recent revelations”. Those revelations referred to reports casting doubt on the financial security of SBF’s trading company, Alameda Research — suggesting FTX itself may be in financial peril.

Unsurprisingly, these tweets spooked a crypto market still very much shaken by the numerous high profile collapses in the past few months, leading to a bank run on FTX.

SBF hit back, accusing a “competitor” of trying to topple FTX with false rumours of financial problems. Customers however, preferring to be safe than sorry, continued to withdraw their assets from FTX up until Tuesday morning when the exchange suspended withdrawals, before announcing later that day that it would be acquired by Binance.

Both CZ and SBF insist all customer funds will be safe under the new deal with SBF tweeting, “all assets will be covered 1:1. This is one of the main reasons we’ve asked Binance to come in. It may take a bit to settle etc. – we apologize for that. But the important thing is that customers are protected.”

This episode demonstrates just how volatile and unpredictable the crypto market currently is. Mere weeks ago SBF was flying high as one of the world’s youngest billionaires — appearing on the cover of Fortune magazine and donating millions to political parties, now his empire lies in ruins, destroyed in the space of just a few days.

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Binance Crypto News FTX Markets

Binance to Liquidate FTX Token Holdings Following a Balance Sheet Report on FTX’s Sister Company

Speculation about the financial position of the Sam Bankman-Fried backed companies FTX and Alameda Research has led to Binance dumping its FTT and shaken the value of the crypto tokens. 

On November 7, Binance CEO Changpeng “CZ” Zhao tweeted that the company would liquidate the FTT it holds “due to recent revelations that have came to light…” and would aim to avoid impacting the market.

Those “revelations” arise from a recent report by CoinDesk that raised concerns about the ties between Sam Bankman-Fried’s two companies and how Alameda Research’s financials indicate its biggest asset is unlocked FTT.

FTX Financial Concerns “Unfounded”: SBF 

CEO of trading firm Alameda Research, Caroline Ellison, claimed on Twitter that the balance sheet that sparked the concern was incomplete and did not reflect more than $10 billion of assets held by the company. 

FTX founder and CEO of crypto exchange FTX, Sam Bankman-Fried took to Twitter to thank supporters and especially “those who stay level headed during crazy times” in light of what he describes as the “unfounded rumours” circulating. 

In his tweet about liquidating Binance’s FTT tokens, CZ Zhao said Binance encouraged industry collaboration and had no intent to hurt users or other platforms, stating: “Regarding any speculation as to whether this is a move against a competitor, it is not.”

The taint of scandal has already had an impact, with FTT down more than 12 percent in the past seven days, currently trading at $22.35. Many social media users are wary of the token’s collapse.

Bankman-Fried said the exchange would keep going:

“And in the end you should do what you want, and trade where you want.  We’re grateful to those who stay; and when this blows over we’ll welcome everyone else back.”

Sam Bankman-Fried, FTX CEO
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Binance BNB Crypto News DeFi Hackers

Binance Network Suffers $560 Million Code Exploit

hacker with phone with binance logo

An exploit of a bug in the Binance-run blockchain network, BNB Chain, allowed a hacker to ‘trick’ the BNB Chain’s BSC Token Hub bridge into sending them roughly US$560 million worth of BNB tokens. This incident renewed concerns involving the security of cross-chain bridges.

The Binance team responded by suspending activity made on the Binance blockchain, freezing a majority of the stolen assets. It’s estimated that the hacker made off with roughly US$100 million worth of assets on other chains.

Within a day of suspension, BNB Chain tweeted that the bridge was up and running again:

In the days following the hack, the price of BNB fell by 5-7%.

Source: CoinMarketCap

Investor funds safe, extra BNB created

BNB Chain is not the first cross-chain bridge to experience a major hack — around $US$625 million worth of WETH and USDC was drained from Ronin earlier in 2022, considered one of the biggest hacks in the history of crypto. 

As the BNB Chain hack was revealed, Binance CEO Changpeng ‘CZ’ Zhao quickly moved to reassure users, tweeting that funds were safe:

The ‘extra’ BNB were essentially created from nothing, through an exploit of the bridge’s code.

A detailed analysis tweeted by security expert @samczsun explains how the hack may have been carried out, summarising by saying, “there was a bug in the way that the Binance bridge verified proofs which could have allowed attackers to forge arbitrary messages.”  

Next Steps: On-Chain Governance Vote

BNB Chain has said governance votes will determine how to approach the next steps in relation to whether to freeze the hacked funds, whether to use BNB Auto-Burn to cover the remaining hacked funds, and how to deliver a Whitehat program to find future bugs and reward hackers with bounties.

The platform also committed to contributing to a broader conversation about the vulnerabilities in cross-chain bridges, stating:

“We will openly share the details of the postmortem and all lessons on how to implement more advanced security measures to shore-up these vulnerabilities.”

BNB Chain
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Axie Infinity Binance Crypto News Litecoin Market Analysis Trading

Top 3 Coins to Watch Today: BNB, LTC, AXS – July 25 Trading Analysis

Let’s take a closer look at today’s altcoins showing breakout signals. We’ll explain what the coin is, then dive into the trading charts and provide some analysis to help you decide.

1. Binance Coin (BNB)

Binance BNB is the biggest cryptocurrency exchange globally, based on daily trading volume. Binance aims to bring cryptocurrency exchanges to the forefront of world financial activity. Aside from being the largest cryptocurrency exchange, Binance has launched a whole ecosystem of functionalities for its users. The Binance network includes the Binance Chain, Binance Smart Chain, Binance Academy, Trust Wallet, and Research projects, which all employ the powers of blockchain technology to bring new-age finance to the world. Binance Coin is an integral part of the successful functioning of many of the Binance sub-projects.

BNB Price Analysis

At the time of writing, BNB is ranked the 5th cryptocurrency globally and the current price is US$263.18. Let’s take a look at the chart below for price analysis:

Source: TradingView

After a 55% decline from Q2, BNB has ranged between $198 and $270. The recent price recovery was approaching probable resistance near $296 but could be aiming for stops above the relatively equal highs near $326. Continuation of the trend could target the daily gap near $354.

Aggressive bulls might add to positions near $260 and $254. Price action near $240 – if it gets there – may be more likely to provide support during any retracements.

Relatively equal lows clustered around $235 seem likely to be swept if the bearish trend resumes. If this move occurs, the price might find support at the significant higher-timeframe level near $219.

2. Litecoin (LTC)

Litecoin LTC is a cryptocurrency designed to provide fast, secure, and low-cost payments by leveraging the unique properties of blockchain technology. The cryptocurrency was created based on the Bitcoin protocol but it differs in terms of the hashing algorithm used, hard cap, block transaction times, and a few other factors. Litecoin has a block time of just 2.5 minutes and extremely low transaction fees, making it suitable for micro-transactions and point-of-sale payments.

LTC Price Analysis

At the time of writing, LTC is ranked the 20th cryptocurrency globally and the current price is US$58.90. Let’s take a look at the chart below for price analysis:

Source: TradingView

After setting a low last week, LTC kicked off a with recovery trend to break the weekly highs. The following 75% plummet found support near $42.36, sweeping under the 40 EMA into the 63.8% retracement level before bouncing to resistance beginning at $60.73.

This area could continue to provide resistance, possibly causing a retracement to the 9 EMA and 18 EMA near $64.12, where aggressive bulls might begin bidding. The level near $70.18, which has confluence with the 40 EMA, may see more interest from bulls loading up for an attempt on probable resistance beginning near $78.13. 

However, if Bitcoin continues its sideways trend, much lower prices could be seen. The old support near $50.18 could provide at least a short-term bounce. If this level fails, the old monthly lows near $43.65 may also give support and see the start of a new bullish cycle after retesting these support levels.

3. Axie Infinity (AXS)

Axie Infinity AXS is a blockchain-based trading and battling game that is partially owned and operated by its players. The Axie Infinity ecosystem has its own unique governance token, known as Axie Infinity Shards AXS. These are used to participate in key governance votes and give holders a say in how funds in the Axie Community Treasury are spent.

AXS Price Analysis

At the time of writing, AXS is ranked the 39th cryptocurrency globally and the current price is US$17.30. Let’s take a look at the chart below for price analysis:

Source: TradingView

AXS‘s relatively small 23% range could suggest that a recovery is setting up in July.

Aggressive bulls could look for entries at the most recent area of support formed near $15.34. However, equal lows near $14.32 make a tempting target for a stop run into this support. This move could reach support near $12.90. 

A decisive move to the downside could run stops below the second set of relatively equal lows near $11.80, possibly reaching support at an old swing high and a daily gap near $11.00.

A recent level near $19.84 provided resistance and caused a swing high to form near $21.88, offering first targets. A move through this high may arrive at new monthly high levels near $23.40 and $25.13.

Learn How to Trade Live!

Join Dave and The Crypto Den Crew and they’ll show you live on a webinar how to take your crypto trading to the next level.

Where to Buy or Trade Altcoins?

These coins have high liquidity on Binance Exchange, so that could help with trading on AUD/USDT/BTC pairs. And if you’re looking at buying and HODLing cryptos, then Swyftx Exchange is an easy-to-use popular choice in Australia.

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Binance Bitcoin China Crypto News Data Hackers

Hacker Wants 10 Bitcoin for Stolen Data of 1 Billion Chinese Citizens

In what could be one of the biggest data breaches in history, a hacker who claims to have stolen the personal details of 1 billion Chinese citizens from a Shanghai police database is offering to sell the information for a mere 10 bitcoin – worth about US$200,000.

The anonymous hacker, identified only as “ChinaDan”, posted the following message on hacker site Breach Forums last week:

“In 2022, the Shanghai National Police (SHGA) database was leaked. This database contains many TB [terabytes] of data and information on billions of Chinese citizens. [These include] several billion case records including names, addresses, birthplaces, national ID numbers, mobile numbers, [plus] all crime/case details.”

‘CZ’ Corroborates Intelligence Threat

In a July 4 tweet, Binance CEO Changpeng ‘CZ’ Zhao said the exchange had stepped up its user-verification processes after Binance’s threat intelligence detected the sale of records belonging to “one billion residents of an Asian country” on the dark web:

CZ blamed the leak on “a bug in an Elastic search deployment by a [government] agency”, without specifically mentioning the Shanghai police case.

Implications for Greater Crypto Industry

Kenny Li, co-founder of Web3 privacy project Manta Network – in which Binance Labs is an investor – warned the breach might have widespread implications for the crypto industry:

The stolen data could be used to exploit users and do things like [launch] phishing attacks to steal keys or [gain] unauthorised access to applications like centralised exchanges.

Kenny Li, co-founder, Manta Network

The Shanghai Police data hack claim comes as China has vowed to tighten protection of online user data privacy, instructing its tech giants to ensure safer storage after multiple public complaints about mismanagement and misuse.

China has recorded a number of data leak incidents in recent years. In 2016, sensitive information about powerful Chinese individuals, including Alibaba founder Jack Ma, was posted on Twitter.

Ransomware War Continues

In November last year, US$6 million in crypto was seized from the REvil ransomware group, and three months later the US Federal Bureau of Intelligence announced the formation of a specific crypto crime division to tackle ongoing ransomware attacks.

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Binance Crypto News Terra

Class-Action Lawsuit Launched Against Binance US for UST Collapse

An unprecedented class-action lawsuit numbering more than 2,000 plaintiffs has been filed against Binance.US in the aftermath of the Terra collapse, accusing the exchange of “misleading investors”.

First Terra Class-Action in the US

Filed in the US District Court for the Northern District of California, the lawsuit marks the first Terra class-action in the US. Roche Freedman LLP will be championing the investors’ case in alleging that Terra’s US dollar-based UST was marketed with higher stability than claimed and promoted by misleading advertising.

Roche Freedman also alleges that Binance.US is not registered as an exchange, nor as a broker-dealer, meaning it could have been violating securities law by listing an unregistered security in UST:

Binance.US has responded to these claims in stating that “Binance.US is registered by FinCEN [US Treasury’s financial intelligence unit] and adheres to all applicable regulations. These assertions are without merit, and we will defend ourselves vigorously.” The lawsuit also names Binance’s chief executive, Brian Shroder, as a co-defendant.

Binance Challenges Money-Laundering Allegations

Only a week ago, Binance challenged allegations regarding the laundering of US$2.4 billion. According to a Reuters report, the stolen funds had been laundered through the exchange between 2017 and 2021. The report, which Binance labelled a “woefully misinformed op-ed”, followed previous investigations into unreported crypto income.

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Binance BNB Crypto News Cryptocurrency Law Regulation

US Regulator Investigates Whether BNB Token is an ‘Unregistered Security’

US market regulator the Securities and Exchange Commission (SEC) has launched an investigation into whether global crypto exchange Binance violated securities law by selling its BNB in an initial coin offering (ICO) some five years ago.

String of Regulatory Challenges

The SEC’s investigation into BNB, now the fifth-largest cryptocurrency by market capitalisation, relates to its ICO in 2017 where it is alleged it was sold without being registered.

In response to the allegations, a spokesperson from Binance commented:

As the industry has grown at a rapid pace, we have been working very diligently to educate and assist law enforcement and regulators in the US and internationally, while also adhering to new guidelines. We will continue to meet all requirements set by regulators.

Binance statement

At this early stage, information remains somewhat limited with Binance adding that it “would not be appropriate for us to comment on our ongoing conversations with regulators, which include education, assistance, and voluntary responses to information requests”.

Binance’s CEO, Changpeng ‘CZ’ Zhao, was less diplomatic in his assessment:

Aside from the SEC investigating several other high-profile ICOs, Binance is also under the microscope after it was hit with a US$5 million class-action lawsuit in which users claimed the exchange sold them 79 different crypto assets (including Dogecoin, Solana, and Cardano) that should have been properly registered as securities.

Vocal Responses from the Bitcoin Community

Max Keiser, Bitcoin maximalist and co-host of the Orange Pill podcast, did not mince his words in response to the news:

Cory Klippsten, founder of Swan Bitcoin exchange, was somewhat more charitable, while sharing the sentiment held by the majority of Bitcoiners:

Michael Saylor, the inimitable founder and CEO of MicroStrategy, has previously said he is of the view that everything outside of Bitcoin is a security. Given that Saylor has spent the better part of three decades operating in US capital markets, you’d imagine he and his legal team have their finger on the regulatory pulse.

Saylor certainly made the point crystal clear in a recent interview with former hedge fund manager Raoul Pal, in which the two clashed over what Pal considered to be “outdated securities laws”: