Proof-of-Reserves Concept Gains Traction as Major Crypto Exchanges Provide Wallet Lists and Promise Full Audits
When it was first discovered that FTX might be insolvent, a large slew of crypto exchange executives said that they aimed to provide proof-of-reserves audits. While exchanges like Binance and Crypto.com have provided wallet addresses tied to company wallets, blockchain analytics firm Nansen has detailed the company is in the midst of creating a display of crypto exchange proof-of-reserves.
Proof-of-Reserves Concept Pushes Proof-of-Solvency to the Forefront of Crypto Conversations
Three days ago, amid the chaos surrounding FTX, a group of crypto exchange executives detailed that they planned to provide proof-of-reserves via a Merkle tree and full audits. Following the discussions, Binance disclosed the companyâs hot and cold wallet addresses and Crypto.comâs CEO Kris Marszalek shared his firmâs addresses.
The blockchain analytics firm Nansen has gotten involved and the company is building a proof-of-reserves dashboard to display exchange reserves. âWe are working with exchanges to display proof-of-reserves on [Nansen] for everyone to track their token holdings and transactions,â Nansen detailed on Nov. 11.
Nansen shared a current list of exchange portfolios and said that it would update the thread when more exchanges joined. So far, the thread includes exchanges such as Binance, Crypto.com, Okx, Kucoin, and Deribit. Bitfinex CTO Paolo Ardoino has also shared Bitfinexâs reserve list as well, alongside a Github repo that hosts the trading platformâs addresses.
âBitfinex also developed in the past an open-source library called Antani,â Ardoino added. âProof of Solvency, Custody and Off-chain Delegated Proof of Vote. We plan to revive it and have a way for users to cryptographically verify their balances respecting their privacy.â
In addition to Crypto.com, Okx, Kucoin, Binance, Bitfinex, and Deribit, the crypto exchange Bybit promises to release proof-of-reserves. Cake Defi has also provided a compiled list of reserves as well. Reports further note that Huobi and Poloniex have plans to share proof-of-reserves.
Exchanges listed on Nic Carterâs proof-of-reserves list or âWall of Fame,â include Kraken, Bitmex, Nexo, Coinfloor, HBTC, Gate.io, and Ledn. Coinfloor, HBTC, Gate.io, and Lednâs reserve assessments are older than Kraken and Bitmexâs. Nic Carterâs proof-of-reserves list says Nexo provides daily attestations.
What do you think about all the crypto exchanges providing proof-of-reserves lists and promising audits and attestations in the near future? Let us know your thoughts about this subject in the comments section below.