CryptoCom becomes the latest exchange to publish a ‘proof-of-reserves’
As we know after the FTX Collapse one of the world’s largest exchanges this proof-of-reserves was introduced to add a transparency in the investment process for the Crypto investors. CryptoCom has become the latest exchange to provide a snapshot of its reserves holdings. After the huge FTX Collapse, multiple well-known Crypto Exchanges have disclosed their share of holdings. The main motive of sharing this to provide a glimpse on the semi-liquid assets of the company. In order to assure investors for their financial security and holdings of their digital asset security.
Objective of sharing the report –
Proof-of-reserves is designed to allow users to verify assets held within a Crypto platform. The verification is done by a third-party or auditing firm who takes an anonymize snapshot of the client’s balances and aggregates them into a graphic. In order to give a clearer picture of the real-time Crypto asset holding on the Crypto Exchange platform.
The initiation of the “proof-of-reserve” by CryptoCom marks a new transparency push by the crypto industry. With a surplus of holdings CryptoCom ensures a good liquidity on assets on the platform, providing a security to investors from illiquidity.
Last month, after sudden FTX collapse, Binance also launched a proof-of-reserves system that appears to show that the exchange has sufficient funds to fully cover its users’ assets.
