The new proof-of-reserve tool lets users monitor exchanges’ reserves via displays of total assets and public wallet addresses, together with the balance and value of the wallets displayed.
CoinMarketCap, a major market researcher and tracker in the crypto space, said that the launch of a new feature on its platform will give users updated financial insights on crypto exchanges.
The proof of reserves (PoR) tracker mainly audits active crypto exchanges in the sector for transparency on liquidity at a given time. Based on that announcement, the tracker details the total assets of the firm, and its affiliated public wallet addresses, together with the balances, current price, and values of the wallets.
CoinMarketCap reports the PoR trackers will update data after every five minutes. On November 22, the firm tweeted a guide for the users on how to navigate the tool.
In the 5-part Twitter thread, Binance was provided as an initial example with more than $65 billion listed in its cumulative wallet addresses. Other exchanges with PoR information available include OKX, KuCoin, Huobi, Crypto.com, Bitfinex, and Bybit.
Binance CEO and co-founder Changpeng “CZ” Zhao retweeted the development made by CoinMarketCap with a link to Binance’s page. Some users in the crypto space on Twitter have termed this feature as a “great transparency addition.”
Zhao was among the first to pledge to offer proof of reserves after the continuing FTX liquidity and bankruptcy crisis.
On November 10, it published a proof of assets, which included wallet addresses and Activity. Changpeng Zhao then tweeted that what is available now is just the first iteration of what will be available through Merkle Tree PoR soon.
Buy Bitcoin NowFollowing Binance’s example, most of the other platforms in the space started unleashing their financial reserve and liquidity information aiming to offer full transparency. Bitfinex, Chainlink Labs, and Bybit were among some of the first to come forward with their data.
Nonetheless, the crypto investment product service Grayscale has withheld its on-chain PoR due to what it terms as security issues. It did release a letter from Coinbase Custody that verified that Grayscale’s crypto holdings are wholly backed, yet withheld wallet addresses.
