Cryptocurrency

Crypto exchanges to publish ‘proof-of-reserves’ following FTX’s implosion

Several major cryptocurrency exchanges, including Binance, Huobi, OKX, KuCoin, etc., have revealed their intention to open up their funding reserves to stem the contagion fears currently plaguing the cryptocurrency market. did.

Binance CEO Changpeng Zhao has advised cryptocurrency exchanges to do a Merkle Tree Proof of Reserve. According to him, traditional financial institutions like banks can operate on fractional reserves, but cryptocurrency exchanges should not.

CZ added that Binance plans to start proving its reserves soon to ensure full transparency. On November 9, he further clearly the exchange had its top saf $1 billion insurance fund. Binance established a fund in July 2018 to protect user funds.

CZ did not disclose when the exchange will issue a Merkle Tree reserve.

Other exchanges get clues

Gate.io CEO Lin Han said the exchange was the first to offer 100% proof of reserves through Merkle Tree verification.

Han continued that crypto companies will disclose their open source solutions to the industry in order to promote transparency and promote healthy industry development. Gate.io conducted his two Proof of Reserve audits conducted by Armanino LLP. The latest results he published on October 28th.

Justin Sun has revealed three wallets he said contained 48,555 bitcoins (about $85 million). That’s less than 3% of his Huobi Global and Poloniex assets. Other assets on the exchange include U.S. dollars, stablecoins and Treasury bills, according to Sun.

KuCoin and OKX CEOs Johnny Lyu and Jay Hao have revealed that the exchange will publish the booking proof within the next 30 days.

Posted In: Binance, Exchanges

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