Binance Labs reportedly made historical return on investment

As a result, the total assets under management have hit $7.5 billion, according to the latest blog post

Binance Labs, the investment arm of crypto exchange Binance, reportedly made a historical return on investment, reaching as high as 2,100%.

As a result, the total assets under management have hit $7.5 billion, according to the latest blog post.

The platform also assured users its ‘financial status is very healthy’ and added that it has sufficient capital reserves to cover day-to-day operations and ride out any challenging cycles.

Binance said all users’ assets in its platform are supported 1:1. Moreover, clients also have the right to withdraw coins at any given time, thereby quashing rumours about sufficient reserves for users to do so.

Taking a jibe at FTX, whose founders are being accused of misappropriating user funds, Binance stated that it will not embezzle such assets for any transactions or investments. The exchange further clarified that it has no debts, nor is it on the list of creditors of any company that has recently gone bankrupt.

A few negative cases do not represent the entire industry. Many people started to doubt and attack the encryption industry as a whole through a few negative cases, which shows that the development of the entire industry still has a long way to go, it stated.

In the wake of the FTX collapse, the crypto industry’s latest obsession has been executing proof-of-reserve attestations. As such, Binance released a Merkle Tree-based system for Bitcoin and Ethereum. A similar approach was taken by other platforms such as OKX, Crypto.com, and ByBit amid growing calls from investors demanding transparency from centralized exchanges across the world.

Global audit firm Mazars certified that Binance held enough Bitcoins and Wrapped Bitcoins (WBTC) to cover all customer balances on the platform as of November 22nd. However, several industry experts pointed out that the report did not dwell much on the mentioned reserves but concentrated on informing the public about the backed assets.