Home CryptocurrencyBitcoin OKX publishes a Proof of Reserves page along with instructions on how to self-audit your reserves

OKX publishes a Proof of Reserves page along with instructions on how to self-audit your reserves

by SuperiorInvest

Crypto exchange OKX has released a Proof of Reserves page that allows users to check its reserves to ensure they are solvent. This comes at a time when crypto exchanges are coming under more scrutiny following the fall of FTX. OKX announced the new site in a tweet as well as on its blog.

The Proof of Reserves site offers users two different options for auditing the exchange’s reserves. The first allows users to get a brief summary of the exchange’s current reserves and liabilities for its three main cryptocurrencies: BTC, ETH and USDT.

This summary currently shows that OKX has 102% of the BTC and ETH it needs to process all withdrawals in those coins, while it says it has 101% of the USDT needed to process all Tether withdrawals.

The second option is labeled “view my audit”. It allows the user to log in and view a snapshot of their balances held on the exchange. The company said these balances should be equal to those found on the asset overview page of the app’s dashboard, unless the user has taken out margin loans.

Some users may not trust the company’s web app to provide accurate information, so the company has also provided two help files that explain how to audit reserves using the PC console. These documents are titled “How to Verify Your Assets Are Included in the OKX Merkle Tree?” and “How to Verify OKX Ownership and Wallet Address Balance.”

One of the docs explained how to query the OKX API to get a merkle tree customer balances and compare them with balances publicly available on the blockchain. The second explained how users can obtain a merkle leaf of their own balances and verify that this leaf is part of a larger tree.

In a press release, OKX Director of Financial Markets Lennix Lai opined that this Proof of Reserves site will help bring more transparency to the cryptocurrency market:

“Our new proof of reserves page and self-audit feature allow users to verify that their assets are 100% secured. In addition, third party audits are also carried out to provide additional assurance. We believe that much more transparency needs to be brought to our industry in order to build back stronger after recent events.”

Crypto exchange FTX suddenly experienced a liquidity crisis from November 7 to 11, leading the company behind her to declare bankruptcy. In response to this event, several executives from major crypto exchanges stated that Proof of Reserves sites are needed to ensure transparency so that such an event never happens again.

OK previously stated that it will provide proof of reserves “as soon as possible”. Kucoin and Binance also stated that they plan to provide proof of reserves within the next few weeks. Several other crypto exchanges provided Proof of Reserves sites even before the FTX story broke, including Gate.io, Bitmex, and Kraken.

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