Several leading cryptocurrency exchanges have joined Binance CEO Changpeng Zhao (CZ)’s proof-of-reserve proposal for greater transparency in the wake of FTX’s balance sheet problems and collapse.
CEO CZ said yesterday that banks are working with proof of fractional reserve, but that’s not the case with cryptocurrency exchanges, after balance sheet problems that drove FTX to collapse and led to a deal with Binance, so reserve verification is needed for more transparency. taking the first step towards will soon start making proof of reserve had explained.
Stating that they will announce their reserves by being included in this ambitious step of Binance CEO CZ Gate.io, Huobi and bitget among leading cryptocurrency exchanges such as OKX also participated. In a statement made by OKX, Proofs of reserve will begin to be published within 30 days. reported.
According to their statements, exchanges are trying to verify the reserves they hold. Merkle Tree will use their data. The Merkle Tree is a movement to ensure the integrity of the data in the system. Exchanges transfers, data, blocks and accuracy of reserves The aim of this transaction is to create a more reliable environment for investors in the crypto money sector.