CoinMarketCap, a leading cryptocurrency industry researcher and market tracker, has announced the launch of a new feature on its platform that allows users to get up-to-date financial information about exchanges.
Proof of reserves (PoR) tracker audits active cryptocurrency exchanges in the industry for transparency on liquidity at any given time. According to the announcement, the tracker details the company’s total assets, and its affiliated public wallet addresses, along with the balances, current price, and values of the wallets.
CoinMarketCap reports that the PoR trackers will update the data every 5 minutes. On November 22, the company tweeted a guide for users on how to navigate the tool.
NEW #CMC Feature: Exchange’s Proof of Reserves
Proof of Reserves (PoR) provides transparency to #cryptocurrency reserves through a verifiable auditing practice.
— CoinMarketCap (@CoinMarketCap) November 22, 2022
NEW CMC Feature: Proof of Exchange Reserves
Proof of Reserves (PoR) brings transparency to cryptocurrency reserves through a verifiable auditing practice.
In the 5-part Twitter thread, Binance was given as an early example with over $65 billion listed in their combined wallet addresses. Other exchanges with PoR information available include KuCoin, Bitfinex, OKX, Bybit, Crypto.com, and Huobi.
Binance CEO and Co-Founder Changpeng “CZ” Zhao, retweeted the development of CoinMarketCap with a link to the Binance page. Some members of the cryptocurrency community on Twitter have qualified this feature as a “great addition of transparency”.
CZ was one of the first to commit to providing proof of reserves following the current liquidity crisis and FTX bankruptcy.
On November 10, it posted a proof of assets, which included wallet addresses and activity. CZ then tweeted that what is available now is just the first iteration of what will be available via PoR and Merkle trees in the near future.
Following the example of Binance, many other platforms in the space began publishing their financial reserve and liquidity information in an effort for transparency. Chainlink Labs, Bitfinex, and ByBit were some of the first to submit their own data.
Nevertheless, Cryptocurrency investment product provider Grayscale has withheld its on-chain PoR due to what it says are security concerns. It posted a letter from Coinbase Custody verifying that Grayscale’s cryptocurrency holdings are fully backed, but the wallet addresses were not included.
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