CZ: Users can withdraw funds at any time

Binance faced a massive user withdrawal crisis earlier this week as its asset reserves proved unconvincing to investors, but market fears dissipated after CEO Changpeng Zhao (CZ) tried to reassure investors, and in-chain data showed that Binance's outflows have slowed.

According to blockchain analyst firm Nansen, net outflows from Coinan reached $239 million over the past 24 hours, down from $272 million the previous day and $902 million on Dec. 13. Although Nansen does not include bitcoin-related data, the firm estimates that Coinan has at least $60 billion in reserves on the chain.

In terms of cryptocurrency volume, data from CryptoQuant, another research firm, showed that Coinan saw outflows of about 3,279 bitcoins on Thursday, well below Tuesday's record high of 40,353 bitcoins.

Since the sudden collapse of FTX and the news of several cryptocurrency operators closing down, users have become more cautious about storing their funds on exchanges, and to give investors more peace of mind that their funds have not been misappropriated, CoinSec has been preparing a "proof of asset reserves".

The company's main business is to promote the development of a new product, which will be the first of its kind in the world. In an interview with CNBC, Zhao Changpeng said.

The user can withdraw 100% of the assets deposited in CoinSec, no matter what day it is, without any problem.

Zhao Changpeng pointed out that Coin Securities does not operate under a "fractional reserve system," meaning that Coin Securities will not lend out its customers' deposits. He added that cryptocurrency operators should hold user assets on a 1:1 basis, which is exactly what the company does.

Proof of asset reserves

Meanwhile, CryptoQuant's analysis of CoinAnchor's proof of reserves report shows that 97% of CoinAnchor's bitcoin liabilities (i.e. customer deposits) are collateralized by exchange assets, which increases to 101% when factoring in bitcoin lent to customers, and that the data provided by CoinAnchor is consistent with CryptoQuant's in-chain metrics and is unlikely to be falsified.

In addition, the in-chain data indicates that Coinan's Ether and Stablecoin reserves do not currently exhibit "FTX-like" behavior.

CryptoQuant also mentioned that Coinan's "Clean Reserve" is 88.95%, which means that BNB is still a very low percentage of Coinan's total assets. By comparison, Huobi's Clean Reserve is 56%, Bitfinex is 66.5%, Kucoin is 81.64%, Crypto.com is 97%, and OKX is 100%.