• Binance.US has responded to recent FUD over trading bitcoin cash (BCH) and maintaining the coin’s reserves.
• Binance.US claims to maintain a 1:1 reserve policy, which means an equivalent amount in reserve for every unit of BCH held by customers.
• Bitcoin cash price has risen over 3% in the recent 24 hours.
Binance Addresses Recent Concerns Over Bitcoin Cash
Binance US has responded to concerns regarding trading bitcoin cash (BCH) and its ability to maintain the coin’s reserves. The exchange experienced a temporary disruption in BCH withdrawals due to a technical problem in the deposit sweeping system but clarified that it maintains a 1:1 reserve policy – meaning there is an equivalent amount in reserve for every unit of BCH held by customers. Following this announcement, Bitcoin Cash price has seen an increase of 3% within 24 hours.
What Is A Reserve Policy?
A reserve policy is when an exchange keeps an equivalent amount for each unit of cryptocurrency held by customers on their platform. This ensures that all customer assets are secure and protected from any potential risks associated with holding digital currencies on exchanges. In this case, Binance US maintains a 1:1 reserve policy for every unit of Bitcoin Cash held by customers on its platform, meaning they keep one unit of Bitcoin Cash for each one held by users on the exchange.
What Was The Issue With BCH Withdrawals?
The issue with withdrawing Bitcoin Cash arose due to a technical problem in the deposit sweeping system which automatically sweeps funds from individual deposits wallets into hot wallets and eventually cold wallets where assets are securely stored away from potential risks associated with holding digital currencies on exchanges. However, this process encountered an anomaly before the weekend which prevented automatic sweeps specifically for BCH deposits leading to temporarily pausing all withdrawals related to Bitcoin Cash on all networks until late July 9th when they were resumed again as normal.
Bitcoin Cash Price Increase Following Announcement
Following this announcement, Bitcoin Cash price saw an increase of 3% within 24 hours as investors regained confidence in the security and integrity maintained by Binance US when it comes to protecting customer assets. It is also important to note that other external factors such as market sentiment can be influential when it comes to prices increasing or decreasing over time even though these announcements may initially cause short term price changes as seen here with Bitcoin cash rising following this announcement made by Binance US about its reserve policy .
Conclusion
To conclude, while factors such as market sentiment can influence long-term prices movements, investor confidence can be restored through announcements such as these from exchanges like Binance US confirming that they maintain 1:1 reserves policies for cryptocurrencies like Bitcoin Cash ensuring user funds remain secure at all times