Missing From the Debate About Binance’s Proof of Reserves and Auditor, One Metric Shows Another Exchange Could Be in Trouble

“If the alternate shouldn’t be utilizing its collateral to borrow cash, it does not actually matter what the clear reserves are. If each buyer’s crypto is absolutely held 1:1 in correct wallets, it doesn’t actually matter,” he instructed CoinDesk through Telegram. “What’s extra necessary, is understanding the alternate’s liabilities quantity. Understanding the reserves is one a part of the equation, however extra importantly, what are the liabilities.”