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Binance admits “error” in mixing token reserves and user funds

Binance is allegedly working to fix the “error”. The crypto exchange released a proof of collateral report for all 94 Binance-pegged tokens, or B-Tokens. Data suggested the Binance wallet holding the exchange’s own token reserves also held user funds. Binance has reportedly acknowledged storing customers’ funds in a wallet that also holds the cryptocurrency exchange’s […]

The post Binance admits “error” in mixing token reserves and user funds appeared first on CoinJournal.

  • Binance is allegedly working to fix the “error”.
  • The crypto exchange released a proof of collateral report for all 94 Binance-pegged tokens, or B-Tokens.
  • Data suggested the Binance wallet holding the exchange’s own token reserves also held user funds.

Binance has reportedly acknowledged storing customers’ funds in a wallet that also holds the cryptocurrency exchange’s in-house tokens.

A report by Bloomberg on Tuesday revealed that Binance had admitted to the fact, but noted this had happened erroneously.

Binance wallet holds B-Tokens and customer funds

According to details attributed to a Binance official, the report noted the exchange had said the ‘mixing’ of customer funds and collateral for its B-Tokens was done by mistake. 

B-Tokens are Binance-pegged versions of crypto tokens such as Bitcoin, Ethereum and Polkadot. They are wrapped tokens that allow for usability across BNB Smart Chain and other ecosystems.  

Binance’s proof of collateral report for its in-house tokens released on Monday showed the leading crypto exchange had all 94 B-Tokens fully collateralized. But while the tokens are supposed to be backed 1:1, the proof of collateral page showed many tokens had way more reserves than that which is needed to match the issued tokens.

This indicates user funds are also stored in the Binance 8 wallet.

The exchange explained the “error”, noting that the said wallet is a Binance cold wallet that has received collateral assets by mistake.  The exchange had started fixing the error, the report added.

The Binance Coin token traded higher on Tuesday despite the news, with BNB up by 3.5% at the time of writing to change hands around $314.

The post Binance admits “error” in mixing token reserves and user funds appeared first on CoinJournal.

Source: CoinJournal: Latest Bitcoin, Ethereum & Crypto News

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Top 5 Cryptocurrencies Of The Week – Week 4

This article is all about the top 5 cryptocurrencies of the week that performed well in the last seven days. Let’s take a look at it in more detail.

Crypto investors are getting ready to enter the new month as the crypto market continues to advance. The cryptocurrency market will be buzzing in the next few months. There are still numerous altcoins worth considering for investment. This article is all about the top 5 cryptocurrencies of the week that performed well in the last seven days. Let’s take a look at it in more detail.

5. Top 5 Cryptocurrencies of the week: Convex Finance (CVX) +16.29%

— Convex Finance (@ConvexFinance)

Convex Finance (CVX) is a powerful DeFi platform built on the Curve Finance exchange. It offers incentives to CRV investors in the form of higher DeFi yields. Recently, the CVX token has seen significant growth, with a price increase of +16.29% over the past 7 days, earning it a spot among the top-performing cryptocurrencies.

4. Top 5 Cryptocurrencies of the week: Avalanche (AVAX) +20.29%

— Avalanche (@avalancheavax)

Avalanche is an advanced blockchain network that excels in its ability to process smart contracts and boasts exceptional scalability. As a multi-chain system, it prioritizes scalability, interoperability, and cost-efficiency. The primary use case for Avalanche is in the field of decentralized finance (DeFi). Recently, the AVAX token has seen significant growth, with a price increase of +20.29% over the past 7 days, earning it a spot among the top-performing cryptocurrencies.

3. Top 5 Cryptocurrencies of the week: Axie Infinity (AXS) +24.97%

Axie Infinity is a blockchain-based game that allows players to breed, raise, and battle fantasy creatures called Axies. Players can also earn cryptocurrency by participating in the game’s economy and participating in in-game activities. The game runs on the Ethereum blockchain, and the cryptocurrency used in the game is called SLP (Small Love Potion). Recently, the AXS token has seen significant growth, with a price increase of +24.97% over the past 7 days, earning it a spot among the top-performing cryptocurrencies.

2. Top 5 Cryptocurrencies of the week: Aptos (APT) +31.24%

Aptos is a smart contract platform that is considered by many as the successor of Diem, the failed stablecoin network by Meta. It is a Layer 1 blockchain that utilizes Move, a new smart contract programming language. The project is being developed by Aptos Labs, a blockchain company founded by two former Meta employees. It utilizes Proof-of-stake as its consensus mechanism. Move aims to enable parallel processing of transactions, potentially leading to transaction speeds of up to 100,000 transactions per second. Recently, the APT token has seen significant growth, with a price increase of +31.24% over the past 7 days, earning it a spot among the top-performing cryptocurrencies.

1. Top 5 Cryptocurrencies of the week: Fantom (FTM) +35.32%

Fantom (FTM) is a blockchain platform that aims to provide fast and low-cost transactions. It uses a unique consensus algorithm called “Lachesis” which is based on the “Byzantine Fault Tolerance” (BFT) consensus mechanism. This algorithm allows for fast and efficient transactions, making it suitable for decentralized applications and use cases that require high throughput, such as DeFi and gaming. Fantom also has a two-layer architecture, which allows for scalability and interoperability with other blockchains. Recently, the FTM token has seen significant growth, with a price increase of +35.32% over the past 7 days, earning it a spot among the top-performing cryptocurrencies.

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Source: Altcoin

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