The world’s largest exchange Binance has been battling to put out the fires of fear, uncertainty, and doubt over the past few weeks. The latest debunking regards the Bitcoin Cash (BCH) reserves on the American subsidiary of the exchange, Binance.US.
On July 11, Binance.US posted a notice to customers stating it wanted to “address some recent FUD regarding BCH (Bitcoin Cash).
Binance Bitcoin Cash Reserves Questioned
The company added that it maintains 1:1 reserves, “which means for every BCH you hold on our platform, we maintain a BCH in reserve.”
Binance.US temporarily paused Bitcoin Cash withdrawals earlier this week due to a “technical issue” in its deposit sweeping system.
Furthermore, it explained that under normal conditions, the system automatically sweeps funds from customers’ individual deposit wallets into its hot wallets and, ultimately, to its cold wallets. However, sweeps from BCH deposit addresses stopped functioning, resulting in a pause in transactions until they found a fix.
“BCH withdrawals on all networks have now been fully operational since late Sunday night,” the firm clarified.
“Rest assured that your assets remain safe and secure, and no amount of FUD will ever change that.”
Binance.US is fighting off attacks from all sides as U.S. regulators ramp up efforts to shut down the exchange. It has been sued by the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) for multiple alleged misdemeanors.
Moreover, its banking partners are severing ties, and the exchange has been forced to halt USD deposits. Dollar withdrawals are also expected to be halted on July 20, causing a rush to cash out.
This created major price discrepancies on Binance.US. Even Bitcoin fell to a discount of around 10% from global spot prices last week.
BCH Price Outlook
Bitcoin Cash has been on a bit of a roll recently, with trade volume primarily dominated by South Korea. Major Korean exchanges saw surges in trading on the BCH/KRW pair, pushing prices of the Bitcoin hard-forked coin over $300.
The momentum didn’t last, and BCH has fallen back as sentiment wanes. The coin is currently trading flat on the day at $275 and has not moved much over the past week.
However, Bitcoin Cash has gained an impressive 170% over the past month, outperforming its big brother. Nevertheless, the asset remains down a painful 93% from its all-time high.
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