- Vitalik Buterin, co-founder of Ethereum, wants to come up with some kind of new proof-of-reserves protocol and use Binance as a guinea pig, or first test case.
- Changpeng Zhao, CEO of Binance has emphasized the current need to increase transparency in the industry with the aim of increasing user trust.
Trust in centralized crypto exchanges and cryptocurrency protocols has been severely eroded as many have failed to protect their users’ money. Now, the remaining crypto firms will have to work to rebuild that trust.
During a discussion Monday on Twitter Spaces, Changpeng Zhao, CEO of Binanceemphasized the current need to increase transparency in the industry with the aim of increasing user confidence.
“Anything we can do to increase transparency is good”said.
In the midst of the commotion FTX, Binance did public their cryptocurrency holdings in a blog post. The statement even revealed a detailed list of the wallets held by Binance along with their respective balances. However, they emphasized that this is not all the information available since, for this, a complete audited report is required.
“Normally, we need the participation of an external auditor. Unfortunately, our number one third-party auditor was a bit busy, as he’s also the auditor of FTX’s reserves, and you know, there’s a bit of scrutiny there.the Binance CEO said during today’s Twitter Spaces AMA.
Binance seems to be looking at alternative ways to increase the transparency of its reserves.
Vitalik Buterin will work hand in hand with Binance to increase transparency
This Monday, November 14, Binance held an “Ask Me Anything” session, headed by Changpeng Zhao where he pledged to offer “full transparency” through Merkle Trees, urging all crypto exchanges to follow in his footsteps.
To this end, Zhao claimed to have held talks with Vitalik Buterin, co-founder of Ethereum, who “wants to come up with some sort of new proof-of-reserves protocol and use Binance as a guinea pig, or first test case“.
However, the details of the new project that Buterin is up to have not been revealed at the moment.
Every man for himself
The crypto market is still in deep tension and other crypto firms could fall. In fact, Zhao said that “if a company’s assets do not include a large percentage of stablecoins, that is a sign of risk.”
Likewise, C.Z. admitted that all crypto exchanges are risky businesses by nature and precisely because of this, He has recommended to all his followers to use self-custody wallets under the motto “Not your keys, not your crypto”.
This motto refers to the fact that only one person will have full ownership of their cryptocurrencies when they store them in a wallet where they are granted the power of private keys.
CZ’s recommendation has been heard by the public as, according to Glassnode, there has been an increase in withdrawals to self-custodial wallets.
The crypto market is currently uncertain and anything could happen. Stay safe!
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