The cryptocurrency exchange BingX announced that it has carried out a verification of reserves (proof of reserves) through the external consultancy Mazars.
According to the report of the auditing company, BingX owns assets with collateralization ratios of 132% for BTC, 122% for ETH, 186% for USDC, and 112% for USDT.
The 2018-founded company joins the stream of centralized cryptocurrency exchanges that are using Proof of Reserves (POR) to reassure their users following the bankruptcy of cryptocurrency exchange FTX in the middle of last month. .
According to the statement received from BingX, the exchange “published its Proof of Reserves (POR) to help develop a more trustworthy and open ecosystem”, in an attempt to restore investor confidence in cryptocurrencies.
“It is our responsibility to help our customers learn about the platform and feel safe. Users should only trade on exchanges that are regulated and licensed or provide verification upon request.”said Elvisco Carrington, Director of Communications and PR at BingX.
“Proof of reserves offers users greater security for their assets. It is not the only tool to show that everything is in order and we will continue to provide everything that can increase user confidence and give greater transparency. We hope that this POR verification by Mazars will help legitimize the industry and restore confidence in the investment community. We know that we are in a tumultuous and complicated scenario, but at BingX we are working to stabilize the outlook,” Carrington concluded.
Reserve verification or POR is a process that seeks to help improve the transparency of centralized cryptocurrency reserves, which was proposed by Vitalik Buterin as a means to ensure verification and increase user confidence in centralized exchanges.
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