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Crypto Exchange OKX Discloses Proof of Reserves, Explains How to Self-audit
In a bid to uphold transparency and accountability following the collapse of FTX exchange, OKX crypto exchange has released proof of reserve for its customers with detailed explanation on how customers could verify and self-audit the report.
🚨 Don’t trust, verify → OKX Proof of Reserves (PoR) is LIVE. 🚨
To set a new standard of transparency, risk management and user protection, we’re launching our first PoR.
You can now verify your assets are backed 1:1 on #OKX ⤵️
Details 🧵👇
— OKX (@okx) November 23, 2022
The released Proof of Reserves page contained reserve ratios for BTC, ETH, as well as USDT. It went further to explain how users could audit its reserve at their disposal so as to be double sure of the figures.
It is instructive to note that the release captured two major pieces of information for users of the exchange. Firstly, it provided users with an abridged summary of the current reserves of OKX coupled with its liabilities for the top three cryptocurrencies: BTC, ETH, and USDT.
The information shows that OKX has a whooping 102% of the BTC and ETH required to handle customers’ withdrawal of coins at any given point in time. In the same vein, it possesses 101% of the USDT required to meet customer’s Tether withdrawal.
Secondly, the release provided an option of “view my audit.” At this stage, users could login and counter verify a snapshot of their balances on the exchange. OKX explained that the balances should be at equal par with the figures available on the asset overview page.
At OKX, we hold a 1:1 reserve of all customer assets on our platform and pride ourselves on our long-standing reputation for best-in-class security.
Now, we're empowering you with greater transparency than ever before through PoR, a common cryptographic audit.
(2/5)
— OKX (@okx) November 23, 2022
Given the fact that scepticisms have rocked the proof of reserve earlier released by some crypto exchanges, OKX went ahead to allay such fears with its documents titled “How to verify if your assets are included in the OKX Merkle tree?” and “How to verify OKX’s ownership and balance of the wallet address.”
Our on-chain wallet holdings are now public, so you can verify your funds are backed by real assets.
We have also launched a Self-audit feature for you to verify your assets are safe. Currently, this feature supports BTC, ETH, & USDT – we'll add more assets over time.
(3/5)
— OKX (@okx) November 23, 2022
Cryptocurrency Exchanges Feel the FTX Domino Effect
It appears that the dust raised by the indiscriminate collapse of FTX is yet to be fully settled as many crypto exchanges are turning right and left exploring means on how to assure and reassure their customers on solvency.
Given the steps taken by other exchanges, Kucoin and Binance have informed their customers that they will soon release Proof of Reserves.
1/ Protecting user funds is the top priority at KuCoin. We will release Merkle tree proof-of-reserves or POF in about one month.
— Johnny_KuCoin (@lyu_johnny) November 9, 2022
Meanwhile, the overall effect of the FTX tragedy on the crypto market is far from over with the general market capitalization down to $834bn according to data from CoinMarketCap.
