Home CryptocurrencyBitcoin CoinMarketCap launches proof-of-reserve tracker for crypto exchanges

CoinMarketCap launches proof-of-reserve tracker for crypto exchanges

by SuperiorInvest

CoinMarketCap, a leading market researcher and tracker in the crypto industry, has announced the launch of a new feature on its platform that allows users to update financial reports on exchanges.

The proof of reserves (PoR) the tracker checks active cryptocurrency exchanges in a given industry for liquidity transparency at any given moment. According to the announcement, the tracker details the company’s total assets and the addresses of its associated public wallets, along with the balances, current price and values ​​of the wallets.

CoinMarketCap reports that PoR trackers update data every 5 minutes. On November 22, the company tweeted a guide for users on how to navigate the tool.

In a 5-part Twitter thread, Binance was cited as the first example with over $65 billion listed in its combined wallet addresses. Other PoR exchanges available include KuCoin, Bitfinex, OKX, Bybit, Crypto.com, and Huobi.

CEO and co-founder of Binance Changpeng “CZ” Zhao, he retweeted development from CoinMarketCap with link to Binance site. Some in the crypto community on Twitter have she called this feature is “a great transparency addition”.

CZ was among the first to take the vow for providing proof of reserves following the ongoing FTX liquidity crisis and bankruptcy.

On November 10 has published a certificate of assets, which included wallet addresses and activity. CZ then tweeted that what’s available now is just the first iteration of what will be available through The Merkle tree PoR in the near future.

Related: Binance raises SAFU fund to $1 billion amid price volatility

Following Binance’s example, many other platforms in the space have started releasing information about their financial reserve and liquidity in an effort to be transparent. Chainlink Labs, Bitfinex and ByBit were among them some of the first to apply with their own data.

However, a provider of cryptocurrency investment products Grayscale retained the PoR in the chain due to what it says are security concerns. It published a letter from Coinbase Custody verifying that Grayscale’s cryptocurrency holdings are fully supported, but wallet addresses are being withheld.

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