Crypto exchanges to publish ‘proof-of-reserves’ following FTX’s implosion Crypto exchanges to publish ‘proof-of-reserves’ following FTX’s implosion
Kucoin and OKX reveal they would publish their reserves within the next 30 days.
1 min read
Updated: Nov. 9, 2022 at 4:19 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Several leading crypto exchanges, including Binance, Huobi, OKX, KuCoin, etc., have revealed intentions to publish their fund reserves to arrest the current contagion fears grappling the crypto market.
Binance CEO Changpeng Zhao advised that crypto exchanges should do a Merkle-tree proof-of-reserves. According to him, while traditional financial institutions like banks can run on fractional reserves, crypto exchanges shouldn’t.
All crypto exchanges should do merkle-tree proof-of-reserves.
Banks run on fractional reserves.
Crypto exchanges should not.@Binance will start to do proof-of-reserves soon. Full transparency.— CZ 🔶 Binance (@cz_binance) November 8, 2022
CZ added that Binance was going to start its proof-of-reserves soon in its bid for full transparency. On Nov. 9, he further revealed that the exchange had topped its SAFU insurance fund to $1 billion. Binance established the fund in July 2018 to protect users’ funds.
CZ did not reveal when the exchange will publish its Merkle-tree proof-of-reserves.
Other exchanges take cue
Gate.io’s CEO, Lin Han, stated that the exchange was the first to provide 100% proof of reserves with Merkle Tree verification.
(1/2) As the 1st exchange to provide 100% Proof of Reserves with Merkle Tree verification, https://t.co/fMCiAnAueR will disclose our open-source solution to the industry and support our peers conducting PoR to promote transparency and accelerate healthy industry development.
— Lin Han (@han_gate) November 9, 2022
Han continued that the crypto firm would disclose its open-source solution to the industry to promote transparency and accelerate healthy industry development. Gate.io has carried out two proof-of-reserves audits conducted by Armanino LLP. The most recent result was published on Oct. 28.
Justin Sun revealed three wallets that he stated contain 48,555 Bitcoin (roughly $85 million), which is less than 3% of Huobi Global and Poloniex’s assets. According to Sun, the exchanges’ other assets include the US Dollar, stablecoins, and Treasury bills.
12qTdZHx6f77aQ74CPCZGSY47VaRwYjVD8
143gLvWYUojXaWZRrxquRKpVNTkhmr415B
1KVpuCfhftkzJ67ZUegaMuaYey7qni7pPj
These 3 addresses has 48,555 #Bitcoin. This is only less than 3% of the total high value assets we have, including btc, usd, stablecoins, T-bills.. @HuobiGlobal @Poloniex
— H.E. Justin Sun🌞🇬🇩🇩🇲🔥 (@justinsuntron) November 9, 2022
CEOs of KuCoin and OKX, Johnny Lyu and Jay Hao, revealed that their exchanges would publish their proof-of-reserves within the next 30 days.
We also believe that all major crypto venues should publicly share their auditable merkle tree proof-of-reserves or POF. We plan to publish ours in the coming weeks (< 30 days) for customer transparency.
4/6
— jay_star.okx ⚛️ OKX CEO (@star_okx) November 9, 2022
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
HTX
Huobi, a virtual asset exchange, launched a revised branding strategy on September 13, 2023, where “Huobi” will be rebranded as “HTX.” “H” stands for Huobi, “T” represents TRON with a commitment to being all in TRON, and “X” stands for the exchange.
Poloniex
Poloniex is a US-based cryptocurrency exchange platform offering a wide variety of digital assets.
OKX
OKX is a world-leading digital asset exchange, providing advanced financial services to global traders by using blockchain technology.
Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.
Changpeng Zhao, popularly known as “CZ,” is a notable figure in the cryptocurrency world, primarily for founding and leading Binance, the world’s leading cryptocurrency exchange by trading volume.
Justin Sun has carved a name for himself as a leading figure in the blockchain sector.