The day before yesterday I was watching CoinMarketCap as always to be informed on crypto prices, dominance and volumes of the last 24 hours. I got this announcement:
New: exchange reserves data.
Safety comes first, and that means being transparent within the crypto space.
Look out for this icon to view the financial reserves of various exchanges.
CoinMarketCap also announced this feature on Twitter.
Obviously this new feature was implemented after the serious events of FTX which caused users’ trust in the exchanges to crunch.
What is a Proof of Reserves (PoR)? It is simply an independent audit conducted by a third party which seeks to ensure that a custodian has the assets it claims on behalf of its customers.
By clicking on the button, you are sent to the CoinMarketCap page relating to exchanges and it is possible to check which exchanges have this tick. Today only a few exchanges have it: Binance, KuCoin, Bitfinex, OKX, Bybit, Crypto.com and Huobi. Clicking on the name of these exchanges opens their tab where you can see the total reserves and their allocation. For example, Binance has total assets of $ 68 billion and the top three assets are BUSD (31%), USDT (22%) and BTC (13%).
KuCoin, on the other hand, has total assets of $ 2,5 billion and the top three assets are USDT (32%), KCS (almost 18%) and BTC (11%).
CoinMarketCap’s Proof of Reserves are updated every 5 minutes and include:
- total assets
- public wallet address ownership
- balance, price and value of public wallets
In recent days I have received many emails from various exchanges and platforms where they reassured me of their seriousness and the ethics of their work.
In your opinion, is this new feature of CoinMarketCap enough to guarantee user safety or could it be implemented? Is Proof of Reserves enough to save an exchange from bankruptcy?
Consider this space a place to talk without censorship.
A winner is a dreamer who never gives up.
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