Key Takeaways:
- The cryptocurrency exchange OKX published its second proof-of-reserves report and promised a monthly update.
- Users may now self-verify and download current and historical data because of new features.
Just one month after publishing its first proof of reserves (PoR), the cryptocurrency exchange OKX has released its second PoR on its website. The second PoR report from OKX included capabilities that let customers confirm that the platform has enough assets to execute customer withdrawals.
A crypto asset audit known as Proof of Reserves verifies that the custodian owns the digital assets it says it is holding on behalf of its consumers. In two different methods, OKX demonstrates this assertion using the Merkle tree (hash tree). Users can first locate their balance inside the tree and demonstrate that their assets are included in the overall OKX balance. To ascertain Proof-of Reserves, the total OKX amount is next contrasted with the publicly available OKX on-chain wallet balance.
The chief marketing officer of OKX, Haider Rafique, declared on Twitter that the exchange is dedicated to regularly disclosing its reserve position.
According to the report, which was published on Thursday, OKX’s wallets had 113,754 bitcoin (worth $1.87 billion) as of Tuesday, compared to the user balance of 112,192 bitcoin (BTC). That results in a 101% bitcoin reserve ratio, a modest decrease from the 102% stated in the first report that was made public on November 22.
According to OKX’s second proof-of-reserves ratios, the exchange has the necessary amounts of Bitcoin BTC, Ether ETH, and Tether USDT to handle all withdrawals of these cryptocurrencies: 101%, 103%, and 101%, respectively. As per the exchange’s previously published PoR attestation from a month ago, OKX has 101% of the USDT and 102% of the BTC and ETH needed to process all withdrawals.
The release of a new feature was also announced, according to Rafique, which enables users to “see OKX reserve ratios for new and previous data,” “self-verify on-chain assets,” and “download new and historical data. The platform will always allow users to self-verify.”
According to Rafique, “monthly PoR results publishing strengthens our commitment to lead the industry in trust and transparency.”
Following the abrupt collapse of FTX, the exchange hopes that publishing monthly proof-of-reserves reports, would encourage transparency and restore users’ faith in cryptocurrency exchanges. The revelation was made shortly after a top Securities and Exchange Commission official in the United States cautioned investors to be “extremely careful” when relying on a cryptocurrency company’s “proof-of-reserves.”
