Good day everybody,
Welcome to CryptoGod-1's blog on all things crypto. Today we are going to take a look at the topic of the fallout from the the FTX disaster. Not so much look at FTX itself, but how it has impacted other exchanges and how some have gone about providing proof of their capability to function.
Verified Exchanges
As of the 15th of November 2022 a total of three major exchanges have provided proof of their reserves, with those in question being Kraken, Coinbase, and Gate. These are some of the most prominent exchanges and most used, meaning for the first time they have shown proof-of-reserves, including liabilities, as part of their audits. This came about from the fiasco of the collapse of FTX, when Binance’s CEO Changpeng Zhao suggested all exchanges should provide Merkle-tree proof-of-reserves. Interestingly, Binance is not one of the exchanges included who have provided this information and does not intend to. As far as Binance is concerned once it has provided its proof of reserves it is sufficient and should not be required to provide any proof of liabilities. Many exchanges had agreed that it was necessary for them to provide full transparency, as much as anything to ensure the fear within the market is alleviated. Bitfinex also chose not to disclose its liabilities with its Merkle-tree proof of reserves.
The below image from blockchaincentre.net shows the latest status of the main exchanges and which has given proof of their assets and liabilities.
Both Crypto.com and Huobi have been at the forefront and publish their proof-of-reserves, while guaranteeing they are currently compiling their liabilities report and will post that soon as well. Other prominent exchanges have also agreed to provide their information, with both OKX and Kucoin currently working on their Proof of Reserves and Liabilities and expect to have them available soon. Interestingly, MexcGlobal and ByBit did not share their liabilities and do not intend to do so, but they have agreed to publish their proof-of-reserves soon.
It has been a strange week for crypto, having seen a brief pump in the market before the horrendous crash caused by the implosion of FTX. The public and the exchanges have reacted and are trying to calm the situation, as much as anything to ensure that Bitcoin does not drop further and reach new lows since its All-Time-High in November 2021. Whether this will have the desired effect, and be enough to stop government officials drafting harsh regulations on crypto remains to be seen. It should however ensure that those with their coins on exchanges are less fearful than they were over the past couple of days, but as always:
"Not your Keys, Not you Crypto"
Have a great day.
Peace. CryptoGod-1.
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