Patrick Hillman, Chief Strategy Officer of Binance, claims that the most popular crypto-exchange may disappear in 10 years as the cryptocurrency market increasingly moves toward DeFi.
Binance: Patrick Hillman believes the crypto-exchange will no longer exist in 10 years
Binance Chief Strategy Officer Patrick Hillman reportedly said that the most popular of crypto-exchanges may no longer exist in 10 years, given the shift the market will make toward DeFi.
JUST IN: Patrick Hillman, director of strategy at #Binance, said that the company may cease to exist in 10 years because the cryptocurrency market is moving towards #DeFi.
— Mr. Whale 🐳 whalechart.org (@WhaleChart) December 1, 2022
In essence, Hillman mentioned Binance as a centralized cryptocurrency exchange that is currently trying to maintain confidence especially after the collapse of FTX.
And indeed, Binance is working to implement its “Proof-of-Reserve,” a way to demonstrate to customers that their assets are fully backed. In this regard, however, Hillman called that process very slow:
“It will be a multistep process, including bringing in a third-party auditor. It takes time to go and be able to conduct an audit of the scope and scale that is required of Binance.”
Proof-of-Reserve has become the new focus of centralized crypto-exchanges that, as in the case of Binance, implement Merkle Tree analysis, which is a way users can verify their assets on the platform.
Binance: a 127,000 BTC transaction as proof of solvency
Speaking of proof, Binance has also recently been in the news for a 127,000+ BTC (more than $2 billion) transaction that would prove the crypto-exchange’s solvency.
Initially, the whale transaction had created some concern within the crypto industry, although it turned out to be just an internal technical transfer.
In fact, the address of the destination wallet that was unknown to the public could not prove that it was instead another wallet on the exchange.
The allegations of Jesse Powell of Kraken
The desperate need to prove to the community that crypto-exchanges are still solvent has led to a real “war” even among the exchanges themselves.
And indeed, while on the collapse of FTX it was Changpeng CZ Zhao (CEO of Binance) who blamed the failed platform, now there is instead Jesse Powell, co-founder and CEO of Kraken who blames Binance.
What Powell wants to criticize about Binance is precisely the subject of reserves. Basically, Powell points out that the new Proof-of-Reserves might prove the exchange’s assets, but they become useless if liabilities are not declared as well.
In fact, at the moment, Binance has declared that it has more than $66.8 billion in reserves but has been unclear about the degree to which it is covering customer deposits or other liabilities.
