Proof of Reserve - Crypto.com Reassure Users
Crypto.com has become the latest platform to partially publish proof of its reserves amid the collapse of rival platform FTX.
As fear of the FTX meltdown contagion spreads, Chris, the company's CEO, has shared links to a Nansen dashboard showing more than $2 billion in reserves, demonstrating his eagerness to remain transparent in the industry.
He stated that while a full proof of reserve audit was in progress, he would be sharing cold wallet addresses for some important assets on the Crypto.com platform.
Crypto.com Reserve:
According to data shared on Nansen, Bitcoin accounts for 30.67% of the total reserves, while Ethereum accounts for 17.32%.
Another 19.77% of the reserves are held in the DOGE-inspired cryptocurrency SHIB.
While 11.99% of the reserves are held in stable currencies such as USDC and USDT.
Tell Chris:
This represents only part of our reserves:
About 53,024 Bitcoin, 391,564 Ethereum, plus other assets totaling approximately $3.0 billion
Reserve Proof:
The “Proof of Reserve” action comes after CZ, CEO of Binance, touched on the issue of cryptocurrency exchanges that use fractional reserves like traditional banks.
Instead, he suggested using Merkle Tree Proof of Reserves in order to maintain transparency.
A Merkle tree, in fact, refers to a data structure that has been authenticated by cryptographic means.
Presumably, the reserve proof detection method represents an audit trail that cannot be tampered with.
Crypto.com's CRO price fell sharply after Chris announced in a statement the partial disclosure of Crypto.com's platform reserves.
Posted using Proof of Brain
I think the proof of reserve will become a mandatory metric to make sure the trading exchange transparency. The fall of FTX has made a big shockwave in the entire crypto industry.