CryptoCom is the latest exchange to offer proof of reserves amid the surge in demand for transparency in the industry resulting from the collapse of FTX.
Audits found over 100% backed balances of customers in multiple major cryptocurrencies, including Bitcoin and Ethereum.
- as an exchange announced On Friday, the proof of its reserves featured an audit from the Mazars Group. Mazars Group is a Binance proof of reserves last month.
- The audit group used “advanced cryptographic procedures” to ensure the availability of client funds. It compared assets held at CryptoCom-controlled addresses with customer balances as of December 7, using live queries of production databases supervised by auditors.
- As a result, we found the reserve ratios of BTC and ETH to be 102% and 101%, respectively. Meanwhile, the top stablecoins, including USDC and USDT, were backed 102% and 106% respectively.
- Other full reserve ratio audited coins include XRP, DOGE, SHIB, LINK and MANA. However, the exchange does not provide exact figures for assets and liabilities.
“Providing audited margin is an important step for the industry as a whole to begin the process of increasing transparency and restoring trust,” said Kris Marszalek, CEO of Crypto.com, in a statement. .
- Similar to Binance, CryptoCom now allows users to verify that their individual assets are safe and accessible, both from their app and website.
- Proof of Reserve is a transparency tool that uses public blockchain data to prove the safety of users’ assets on exchanges. To properly implement this system, an external auditor must analyze the company’s liabilities to ensure that they are fully solvent.
- This fact has been repeatedly pointed out by Kraken CEO Jesse Powell.
Ok, I’ll give you a hint. Here’s a quick one that makes it clear that this isn’t conventional reserves evidence and that real journalists should dig into it right away.
Why use collateral value? Why negative balance included? No wallet signature? Who issues BTCB and BBTC? pic.twitter.com/F9u4XJ5WSi
— Jesse Powell (@jespow) December 8, 2022
Binance Free $100 (Exclusive): Get $100 free and 10% off fees in your first month of Binance Futures when you register using this link (Clause).
PrimeXBT Special Offer: Register using this link and enter the POTATO50 code to receive up to $7,000 on your deposit.