- Kraken CEO, Jesse Powell has called Binance’s ‘Proof Of Reserves’ pointless.
- Binance also replied to Kraken CEO Who Criticized its PoR.
- Other firms have also followed suit to provide their Proof of Reserves.
Jesse Powell, CEO of Kraken, attacked Binance, saying that their “proof-of-reserves” was useless since it lacked “proof-of-liabilities.” It was uncovered that FTX had lent out a large portion of its clients’ assets as per their bankruptcy papers after the bitcoin exchange FTX failed.
Notably, famous exchanges have been rushing to reassure users about their proof-of-reserves and promote market transparency as a direct result of this.
One of the first cryptocurrency exchanges to disclose its proof-of-reserves was Binance, and many other companies soon followed. These previous proofs of reserves, however, were nothing more than the contents of the exchange’s cold wallet accounts.
Binance attempted to create a standard for the sector by eventually releasing its Merkle Tree proof-of-reserves with cryptographic evidence. However, Jesse Powell criticized Binance’s reserves on Twitter, writing:
“I’m sorry but no. This is not PoR. This is either ignorance or intentional misrepresentation.”
The CEO of Kraken continued by saying that the goal of being open and transparent was to determine whether a cryptocurrency exchange has more cryptocurrency in its possession than it owed to its customers.
In reaction to Jesse’s statement, CZ pointed out that it was “in crypto” that exchange owners openly called one other out. He also believed that this was advantageous for a more positive crypto atmosphere.
While releasing its reserves to the public, Binance announced that it would initially start with its Bitcoin holdings. They also will add additional tokens & networks in the coming weeks. Zhao also mentioned that the inclusion of third-party auditors was currently in the process.
Crypto News Land (cryptonewsland.com) , also abbreviated as “CNL”, is an independent media entity — we are not affiliated with any company in the blockchain and cryptocurrency industry. We aim to provide fresh and relevant content that will help build up the crypto space since we believe in its potential to impact the world for the better. All of our news sources are credible and accurate as we know it, although we do not make any warranty as to the validity of their statements as well as their motive behind it. While we make sure to double-check the veracity of information from our sources, we do not make any assurances as to the timeliness and completeness of any information in our website as provided by our sources. Moreover, we disclaim any information on our website as investment or financial advice. We encourage all visitors to do your own research and consult with an expert in the relevant subject before making any investment or trading decision.