- 9 exchanges including Binance and Crypto.com have published their proof of reserves.
- These wallet addresses can be tracked under Glassnode for free.
- Meanwhile, Coinbase, Gemini, and Kraken have not published their proof of reserves yet.
The collapse of previously-leading crypto exchange FTX has sent shockwaves over the entire crypto market. However, not all of its aftermath is bad. For example, since this year, crypto exchanges have been publishing reports of their proof of reserves. Other leading exchanges such as Binance, OKX, and Crypto.com have led the way.
Proof of Reserves: an Arising Trend
To adjust to the increasing demands for transparency, other platforms are now including proof of reserves in their data services. For example, on-chain data site Glassnode now aggregates all in one dashboard.
In a Twitter thread, Glassnode announced its suite of metrics for the said information.
As per Glassnode, up to nine (9) exchanges have disclosed the addresses containing their proof of reserves. Namely, these are Binance, OKX (previously OKex), Crypto.com, Bitfinex, Bybit, BitMEX, KuCoin, and Deribit. Glassnode users can track all of the addresses managed by these exchanges, free of charge.
Leading Exchanges Without Transparent Proof of Reserves
Meanwhile, other exchanges such as Gemini, Coinbase, and Kraken have claimed they have their own methods of proving their liquidity. For instance, Coinbase published an article explaining how their process works as a publicly traded company.
Regardless, Coinbase admitted that their process goes against the logic of many in the crypto space. Specifically, crypto should promote decentralization, which means the removal of middlemen like state regulators.
The same thing can be said about Gemini and Kraken. However, the former revealed earlier that it has some trouble with crypto brokerage firm Genesis, which, in turn. admitted to exposure in FTX.
More Exchanges Following the Trend
Meanwhile, Bitget, Gate.io, and more have recently published their proof of reserves on their respective platforms. Users can verify whether their funds have 1:1 backing on these exchanges after they log in on their account.
To be fair, many exchanges may find it difficult to get the same proof of reserve as others since they may have liabilities. Others like Lbank may take more time before they publish their proof of reserves.
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