By George Ward
The Singapore-based Cryptocurrency exchange platform (Crypto.com) is the newest platform to implement partial “Proof of Reserve (PoR)” amidst the crisis of the FTX exchange platform. Nevertheless, the skepticism of crypto fluctuations from the FTX crisis continues to spread fear in the hearts of many.
The exchange CEO, Kris Marszalek, shared a link to display the exchange’s Nansens dashboard. The dashboard indicates that crypto.com has more than $2 billion in reserves. This indicates his willingness to prove that the exchange is managing the effects of the FTX crisis well.
Furthermore, the exchange CEO added that the finished Proof of Reserved audit was in progress. He also said he would frequently share cold wallet addresses of top assets in the Crypto.com platform.
Data Insights On Their Portfolio Holdings
The Crypto.com Portfolio displayed on Nansen shows that its Bitcoin holdings consist of 30.67% of all its reserves, while Ether is 17.32%. The DOGE-inspired SHIB cryptocurrency isn’t left out, as it accounts for 19.77% of the exchange’s reserves. However, stablecoins like USDC and USDT account for 19.77% of their reserves.
Furthermore, Kris revealed that the analysis isn’t limited to what was mentioned but reveals just a portion of the exchange platform’s reserves. He gave detailed counts of about 53,024 BTC and 391,564 ETH, as combined with other assets owned by the firm amounting to approximately $3 billion.
The Concept Of Proof Of Reserves
The invention came from the Binance Crypto Exchange CEO CZ commenting on the choice of crypto exchanges using traditional banks as fractional reserves. However, CZ suggested using Merkle Tree PoR to promote transparency while transacting with public domains.
Merkle Tree PoR refers to a data framework validated by cryptographic measures. The Merkle Tree’s pattern of revealing Proof of Reserves depicts a proper sequence that cannot be altered.
Besides Binance and Crypto.com, seven other exchanges also support the PoR technology. They agree that it is the best way to promote transparency in their operations.