Based on an announcement on March 7, cryptocurrency alternate Binance has added an extra 11 tokens to its proof-of-reserves (PoR) report. These embrace Masks Community (MASK), Enjin Coin (ENJ), WazirX (WRX), The Graph (GRT), Chromia (CHR), Curve DAO Token (CRV), 1inch Community (1INCH), PowerPool (CVP), Hashflow (HFT), SSV.community (SSV) and Dogecoin (DOGE). With the most recent replace, Binance mentioned it now has over $63 billion throughout 24 property in its proof-of-reserves (PoR) system. The biggest property on the alternate embrace Bitcoin (BTC), Ether (ETH) and Tether (USDT), with $12.7 billion, $7.1 billion and $16.3 billion in web buyer balances, respectively.
Though exchanges have begun adopting the PoR methodology for higher transparency within the wake of FTX’s collapse, specialists have repeatedly warned customers of the restrictions of such methodology. These embrace a lack of awareness on using leverage, collateralization and corresponding proof-of-liabilities and can’t be revealed until accompanying monetary statements complement the PoR.
As informed by Binance, its PoR “makes use of Merkle timber so as to add up on-chain information, in order that customers can relaxation simple realizing that their property are held for them 1:1 in our custody.” In February 2023, the alternate made a serious replace to its PoR system, implementing ZK-SNARKs, which Binance mentioned would “enhance the privateness and safety of consumer information throughout the verification course of.”
Cointelegraph beforehand reported on Dec. 16, 2022, that South African auditor Mazars eliminated Binance’s PoR audit from its web site and ceased such companies for crypto exchanges altogether. The agency beforehand mentioned on Dec. 7 that Binance’s Bitcoin and cross-chain Bitcoin property have been “totally collateralized” on the time. Nevertheless, Mazars additionally acknowledged that its strategies have been primarily based on “agreed-upon procedures” (AUP) and didn’t represent a monetary audit. The AUP was additionally restricted in scope, because it didn’t examine different tokens.
Our Proof-of-Reserves simply obtained an replace.
We’ve now elevated the variety of tokens we cowl by 11, to a complete of 24.
Discover out extra about our Proof-of-Reserves and this latest replace with the weblog under.https://t.co/4kKWhkNK3q
— Binance (@binance) March 7, 2023
