According to Nic Carter, one of the most popular Bitcoin advocates, BitMEX and Kraken get the highest marks in the evaluation of proof-of-reserve approvals by major cryptocurrency exchanges. Here are the details…
Much more is needed to offer the environment of trust the market seeks.
Carter highlights the latest PoR results in an article highlighting the points list and rankings from some of the leading cryptocurrency and Bitcoin trading platforms. It also gives insight into why some exchanges that are starting to publish cryptographic proofs of reserves may still need a lot of work to offer the confidence the market is looking for.
Kraken and BitMEX top the list, while Binance, the world’s largest crypto platform, scores relatively low. But according to the crypto analyst, the movement to own PoRs is undeniably moving in the right direction. He also sees this as a good signal for cryptocurrencies. However, the famous Bitcoin advocate says:
We can come out of this crisis with a big step forward in stock market credibility. But there is a great deal of confusion around Evidence of Reserves, and some of the exchanges taking their first steps towards the procedure have a lot of work to do.
These Bitcoin exchanges rank higher on various metrics
Looking at crypto exchange reserves through metrics such as the platform’s approved assets, estimated deposits covered, and disclosure of liabilities, BitMEX scored the highest with a score of 5 out of 6. Crypto platform Kraken placed second. However, Deribit, KuCoin, and OKX were ranked third to fifth in this order. While some platforms scored highly, Binance’s proof of reserve was mostly ‘incomplete’. That’s why the stock market rated badly. Commenting on this, Carter wrote:
Binance’s first PoR does not offer strong assurances. The data only covers Bitcoin, which represents only 16.5 percent of client assets. Allows individual users to verify that they belong to the set of responsibilities. But it does not include the entire list of responsibilities. This makes it difficult for a third party to verify the procedure.
As we reported on Kriptokoin.com, in the last two months, major exchanges Kraken, BitMEX, OKX, and Binance, among others, have issued what they call Proof of Reserve, although not all of them offer the same assurances. Coinbase also shared a blog post explaining its status as a public company with audited financials and quarterly disclosures.
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