OKX releases its second Proof-of-Reserves Report and promises to publish it on a monthly basis
- March 10, 2023
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OKX said users can now view and download old and new reserve ratios and assess the exchange’s health and safety.
OkX published its second proof-of-reserves report, adding features that allow users to verify that the second-largest platform by trading volume has sufficient assets to handle customer withdrawals.
OKX’s wallets held 113,754 bitcoin (US$1.87 billion) as of Tuesday, 12:00 UTC against a user balance of 112,192 bitcoin (BTC), according to the report released Thursday. The bitcoin reserve ratio is 101%, a slight decline from 102% in the first report, which was released on November 22.
Tether (USDT) held steady at 101%, while ether (ETH) ticked up to 103% from 102%. Based on exchange addresses tracked by Nansen, BTC, ETH and USDT make up more than 90% of holdings.
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A new proof-of-reserves (PoR) report from cryptocurrency exchange OKX allows users to verify whether the second-largest platform by trading volume has sufficient assets to handle withdrawals.
As of Tuesday, 12:00 UTC, OKX’s wallets held 113,754 bitcoin (US$1.87 billion) against a balance of 112,192 bitcoin (BTC) owned by users. That’s a bitcoin reserve ratio of 101%, a slight decline from 102% disclosed in the first report released on Nov. 22.
Over 90% of the assets held by exchange addresses tracked by Nansen are BTC, ETH and USDT. Tether’s (USDT) reserve ratio held steady at 101%, while ether’s (ETH) reserve ratio rose to 103% from 102%.
Proof of reserves is an audit method that crypto exchanges have adopted following the FTX fiasco, to demonstrate that a custodian such as OKX has not lent out customer deposits and holds the assets advertised. Nevertheless, these reports have been met with resentment for omitting details about liabilities and internal quality controls – essential information in the cryptocurrency world. As an example, Binance’s verification of reserves report from French auditor Mazars was berated for failing to include specifics regarding how their exchange liquidates assets in order to settle margin loans.
A press release shared with CoinDesk stated that OKX would release proof of funds on the 22nd of every month to win customer trust and allow users to audit its 23,000 addresses.
The old and new reserve ratios can now be viewed and downloaded by users to assess the exchange’s health and asset safety.
As Chief Marketing Officer Haider Rafique said in the release, “Publishing quarterly PoR results strengthens our commitment to leading the industry in terms of transparency and trust.” “At OKX, we believe that PoR should be verifiable via open source tools so that users can verify the balances and ownership of our reserve addresses themselves.”