According to Bybit’s statement, its customers cryptocurrency launched a system that will allow the exchange platform to verify the cryptocurrency holdings it holds in its reserves.
The Bybit Proof of Reserves system uses Merkle Trees, a type of data structure that can be used for on-chain validation. Bybit says customers with funds on the platform can use the system to confirm that the exchange holds 100% of its assets.
In the announcement, it was stated that the Merkle Tree-based system also allows customers to control the reserve ratio of the platform.
Reserve rates help to prove whether crypto exchanges have enough assets to cover balances held by users. According to Saturday’s announcement, Bybit’s reserve ratio is currently 1:1.
Most of Bybit’s Reserves are in USDT and BGB Altcoins
Reserves and wallet address of the Bitget exchange, 45% USDT, 25% of BGB, 14% BTC, 7% of USDC and 1.67% on Ethereum It was announced in Nansen that a total of approximately 1 billion US dollars, including
This is the latest user security step taken by this crypto exchange after the collapse of FTX. Bybit had previously published wallet addresses holding its reserves.
Bybit is the latest platform to offer a system for users to verify their assets following the FTX bankruptcy. Crypto exchange platforms such as Binance and Crypto.com have also issued their own proof-of-reserve statements. These audits and transparency efforts also came after massive withdrawal requests from customers who were concerned about the financial health of other crypto exchanges.
*Not investment advice.
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