On December 22nd, OKX, the second-largest cryptocurrency exchange in the world, issued its second Proof of Reserves (PoR) on its website. The exchange said that it would publish PoR on or around the 22nd day of every month as part of its commitment to transparency.
According to the press release, now, users may use open-source tools on the website to view and independently validate the exchange’s two PoR results.
On November 23rd of last month, OKX published its first proof-of-reserves page, allowing customers to examine its reserves and determine whether it is solvent. It occurs at a time when crypto exchanges are under closer scrutiny following the demise of FTX.
For users to audit the exchange’s reserves, the proof-of-reserves page provides two distinct methods. The first enables customers to quickly view a breakdown of the exchange’s current assets and liabilities for its major three cryptocurrencies, including Bitcoin, Ether ETH, and Tether.
“View My Audit” is the second choice. The user may sign in and get a snapshot of their balances as they currently stand at the exchange.
OKX PoR, New Features
Users may now check the reserve ratios for new and historical data in OKX’s PoR due to the new features. They can also download the files containing new and historical data when they self-verify on-chain assets.
Additionally, users will have access to both the most current update and all previous PoR data following each PoR publishing. However, current reserve ratios for OKX show that it owns 101% of Bitcoin, 103% of Ethereum, and 101% of USDT.
Three key assets are covered by the exchange’s Merkle tree PoR scheme, and 1:1 reserves have always been kept on hand. Over 90% of holdings are represented by them, according to the exchange Nansen dashboard, which also shows other assets.
For the exchange’s PoR program to be transparent, it has been publishing its 23,000 addresses publicly so people can see what is going on. Its protocol is open source and available to all who wish to view it on GitHub.
OKX CMO Haider Rafique, said:
Publishing PoR results on a monthly basis strengthens our commitment to lead the industry when it comes to transparency and trust. At OKX, we believe that PoR should be verifiable via open source tools so that users can self-verify the balances and ownership of our reserve addresses.”
Nevertheless, industry participants said that POR reports released by crypto exchanges in the wake of FTX’s demise are misleading since there is only so much that can be done to guarantee the financial stability of a centralized crypto company.
As a result, the U.S. SEC is scrutinizing cryptocurrency businesses’ audits more closely to caution investors who might have been comfortable with audits such as POR reports, as reported by TronWeekly today.