Bybit and Huobi join the ranks of major crypto exchanges that have publicly provided proof of their reserves.
The collapse of cryptocurrency exchange FTX and its affiliates has triggered withdrawal suspensions on affiliated platforms and beyond. To reassure investors, major cryptocurrency exchanges are publishing proof of reserves held by them.
Binance was one of the first exchanges to release its cold wallet reserves, revealing that it held approximately $40 billion in stablecoins. Other exchanges soon followed suit, including Bitfinex, OKEx and KuCoin.
Blue-chip assets account for over 85% of Byte balances
according to a report good From the Vu blockchain, Bybit and Huobi have also released their proof of stores. These revelations come after the exchange suspended withdrawals due to the fallout of the FTX collapse.
When contacted by a Bybit spokesperson BeInCryptoSpecifying the structure of the exchange’s reserves. “At the time of publication, Bybit’s largest holdings are USDT, BTC, ETH and USDC – in that order,” the spokesperson said. “These blue-chip assets account for more than 85% of Bybit reserves, and the exchange accounts for more than 50% of the total stablecoin.”
Ben Zhou, CEO and co-founder of Bybit, also issued a statement regarding the choice of platform to publish its Proof of Store. “Bybit is committed to an industry-wide, fully transparent Proof of Reserve (PoR) solution that demonstrates without a doubt that we hold our customer’s funds in custody, and are worthy of their full trust – And that’s what we’re working on,” Zhou said.
Reservation Proof Form
Many of these exchanges offer proof of their reserves by publishing their cold wallet balances. However, they are also working towards providing them through Merkle Tree algorithm.
during Recent AMAChangpeng Zhao, CEO of Binance, explained what an algorithm is. He described it as a “mathematical method” that “allows users to be sure that their funds are included in the total.”
However, Zhao noted that this typically requires third-party auditors, which are currently in high demand. “That is why we published all our cold wallet addresses,” Zhao explained, but admitted that “it is not as good as a Merkle tree.”
As a result, Zhao said he talked with Ethereum co-founder Vitalik Buterin about creating “some kind of new proof of store protocol.” He pitched Binance as a platform for the first test case, which could happen in “a couple of weeks”.
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