Proof of Reserve Status for TLOS Exchanges
The cascade of centralized exchanges and cryptocurrency hedge funds that announced insolvency or bankruptcy throughout 2022 has wiped over a trillion dollars from the market. Moreover, it has left the remaining investors asking a rather important question: Who’s next?
In a recent tweet, CZ announced that Binance would share its Proof of Reserves (PoR) to help ease the worries of its users and recommended that other exchanges do the same. By making their proof of reserves public, exchanges can assure users they have enough cash to support client deposits and, more importantly, withdrawals in the event of a “bank run.”
On that note, Telos has taken this opportunity to check the PoR status of the tier-1 exchanges we’re listed. Here’s what we know so far.
Gate.io
We’re happy to report that Gate.io has published its Proof of Reserves via the Merkle Tree method. Users can download the report directly from their website.
Kucoin
Kucoin Exchange is one of the largest crypto exchanges in the world. Currently, it has not published its proof of reserves. However, its CEO Johnny Lyu stated in a Nov. 9 tweet that Kucoin will release Merkle tree proof of reserves in approximately one month.
Bitfinex
Bitfinex CEO Paolo Ardoino wasted no time in sharing the CEXs proof of reserves after the FTX collapse. You can find all the information in a tweet published on November 11.
Huobi
Huobi won’t find itself on Crypto Santa’s naughty list this Christmas. The Seychelles-based cryptocurrency exchange quickly published its proof of reserves and released a statement on November 12.
MEXC Global
MEXC Global announced in a tweet thread that the exchange was already preparing its proof of reserves documentation to share with its community. In the meantime, MEXC shared data showing a net inflow of user capital thanks to their stringent self-regulatory practices of 1:1 reserve for user assets.
PoR: The Start of Many Necessary Changes for DeFi
While proof of reserves does not guarantee total immunity from insolvency, it does offer a much-needed layer of transparency. It gives users a good idea of how prudent an exchange is with their capital. We will continue to monitor the status of the exchanges that have $TLOS listed on them and share further updates with our community!
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