Proof of Reserves: Regaining traders trust following FTX collapse

[Incarts]

The crypto industry received a shock in 2022 when it was revealed that FTX was declaring bankruptcy. This led to doubts about whether exchanges truly hold the assets that customers entrusted to them or if they mismanage them as with the case of the collapsed exchange.

Going forward it became evident that Proof of Reserves (PoR) would be helpful in regaining customers’ confidence. Proof of Reserves simply implies to the independent audit conducted by smart contract audit companies on cryptocurrency exchanges to verify that they genuinely hold the assets that users have deposited on their platforms.

PoR has come to represent transparency and security in exchanges, as well as a dedication to building unwavering trust in their platforms. As of November 3, 2023, Bitget has gone one step further and published an exceptional reserve ratio of 199%, as seen on Coinmarketcap. This actually means that an extra dollar is set aside on the platform for each dollar a user deposits to guarantee the complete solvency and security of their assets.

Unfortunately, insecurity is one of the major challenges facing the crypto sector. The leading exchanges however are taking a number of steps to close the gaps and win back users’ confidence with PoR one of those measures.

Having experienced the regrettable FTX shutdown, are you most likely tilting towards exchanges with verifiable PoR over exchanges that are devoid of PoR?

 

[Maxicreed]

The fact is the collapse of the FTX debacle was obviously a wake up call for most tope CEXes and the introduction of PoR has reassured the confidence of users. Interestingly some exchanges particularly the aforementioned has rising to the occasion to also launch a customer protection fund which i feel is another second layer of security. I feel more security measures will be rolled as the industry evolves but ya, PoR is actually regaining user trust.

 

[Megamind 247]

The crypto industry received a shock in 2022 when it was revealed that FTX was declaring bankruptcy. This led to doubts about whether exchanges truly hold the assets that customers entrusted to them or if they mismanage them as with the case of the collapsed exchange.

Going forward it became evident that Proof of Reserves (PoR) would be helpful in regaining customers’ confidence. Proof of Reserves simply implies to the independent audit conducted by smart contract audit companies on cryptocurrency exchanges to verify that they genuinely hold the assets that users have deposited on their platforms.

PoR has come to represent transparency and security in exchanges, as well as a dedication to building unwavering trust in their platforms. As of November 3, 2023, Bitget has gone one step further and published an exceptional reserve ratio of 199%, as seen on Coinmarketcap. This actually means that an extra dollar is set aside on the platform for each dollar a user deposits to guarantee the complete solvency and security of their assets.

Unfortunately, insecurity is one of the major challenges facing the crypto sector. The leading exchanges however are taking a number of steps to close the gaps and win back users’ confidence with PoR one of those measures.

Having experienced the regrettable FTX shutdown, are you most likely tilting towards exchanges with verifiable PoR over exchanges that are devoid of PoR?

This is quite insightful, and has driven some curiosity in me and I had to check which exchanges has published their proof of reserve, turns out not many have done this in reality and the leading exchanges seems to take it very seriously, I guess this is to prove the effectiveness of their financial control even coinmarketcap recently announced updated proof of reserve for Bitget which totals $1.54 billion. I definitely will upt in for exchanges that audit their proof of reserve.

 

[Raymondblue]

The crypto industry received a shock in 2022 when it was revealed that FTX was declaring bankruptcy. This led to doubts about whether exchanges truly hold the assets that customers entrusted to them or if they mismanage them as with the case of the collapsed exchange.

Going forward it became evident that Proof of Reserves (PoR) would be helpful in regaining customers’ confidence. Proof of Reserves simply implies to the independent audit conducted by smart contract audit companies on cryptocurrency exchanges to verify that they genuinely hold the assets that users have deposited on their platforms.

PoR has come to represent transparency and security in exchanges, as well as a dedication to building unwavering trust in their platforms. As of November 3, 2023, Bitget has gone one step further and published an exceptional reserve ratio of 199%, as seen on Coinmarketcap. This actually means that an extra dollar is set aside on the platform for each dollar a user deposits to guarantee the complete solvency and security of their assets.

Unfortunately, insecurity is one of the major challenges facing the crypto sector. The leading exchanges however are taking a number of steps to close the gaps and win back users’ confidence with PoR one of those measures.

Having experienced the regrettable FTX shutdown, are you most likely tilting towards exchanges with verifiable PoR over exchanges that are devoid of PoR?

PoR has become really essential and should be one of the yardstick traders must look into before choosing any CEX but unfortunately, only few exchanges have verifiable PoR till date despite many cex claiming to have.

 

[collins124]

This is quite insightful, and has driven some curiosity in me and I had to check which exchanges has published their proof of reserve, turns out not many have done this in reality and the leading exchanges seems to take it very seriously, I guess this is to prove the effectiveness of their financial control even coinmarketcap recently announced updated proof of reserve for Bitget which totals $1.54 billion. I definitely will upt in for exchanges that audit their proof of reserve.

In my opinion, I think traders should only use CEXs with PoR. With the PoR you will feel more confident using the exchange, knowing your funds are in safe hands.

 

[I am Praise]

The crypto industry received a shock in 2022 when it was revealed that FTX was declaring bankruptcy. This led to doubts about whether exchanges truly hold the assets that customers entrusted to them or if they mismanage them as with the case of the collapsed exchange.

Going forward it became evident that Proof of Reserves (PoR) would be helpful in regaining customers’ confidence. Proof of Reserves simply implies to the independent audit conducted by smart contract audit companies on cryptocurrency exchanges to verify that they genuinely hold the assets that users have deposited on their platforms.

PoR has come to represent transparency and security in exchanges, as well as a dedication to building unwavering trust in their platforms. As of November 3, 2023, Bitget has gone one step further and published an exceptional reserve ratio of 199%, as seen on Coinmarketcap. This actually means that an extra dollar is set aside on the platform for each dollar a user deposits to guarantee the complete solvency and security of their assets.

Unfortunately, insecurity is one of the major challenges facing the crypto sector. The leading exchanges however are taking a number of steps to close the gaps and win back users’ confidence with PoR one of those measures.

Having experienced the regrettable FTX shutdown, are you most likely tilting towards exchanges with verifiable PoR over exchanges that are devoid of PoR?

Though there are some reputable exchanges that do not implement PoR but still maintain high levels of security, transparency, and regulatory compliance. But for me, PoR is now at the top of my checklist when deciding on an exchange to use cos this boost my level of assurance that the exchange is operating in a more transparent and trustworthy manner.

 

[BashirJasper]

The PoR are very good source of knowing how exchanges manage their resources and how it translates to the viability and reliability of the exchange but this feat by Bitget is worth complementing.

 

[ImamShaheb]

The crypto industry received a shock in 2022 when it was revealed that FTX was declaring bankruptcy. This led to doubts about whether exchanges truly hold the assets that customers entrusted to them or if they mismanage them as with the case of the collapsed exchange.

Going forward it became evident that Proof of Reserves (PoR) would be helpful in regaining customers’ confidence. Proof of Reserves simply implies to the independent audit conducted by smart contract audit companies on cryptocurrency exchanges to verify that they genuinely hold the assets that users have deposited on their platforms.

PoR has come to represent transparency and security in exchanges, as well as a dedication to building unwavering trust in their platforms. As of November 3, 2023, Bitget has gone one step further and published an exceptional reserve ratio of 199%, as seen on Coinmarketcap. This actually means that an extra dollar is set aside on the platform for each dollar a user deposits to guarantee the complete solvency and security of their assets.

Unfortunately, insecurity is one of the major challenges facing the crypto sector. The leading exchanges however are taking a number of steps to close the gaps and win back users’ confidence with PoR one of those measures.

Having experienced the regrettable FTX shutdown, are you most likely tilting towards exchanges with verifiable PoR over exchanges that are devoid of PoR?

Bitget's PoR is quite satisfactory. Unlike most of the exchanges, Bitget holds their reserve fund more on BTC..... Which is quite good to consider "Trustworthy".

 

[Captainsaudi]

Bitget's PoR is quite satisfactory. Unlike most of the exchanges, Bitget holds their reserve fund more on BTC..... Which is quite good to consider "Trustworthy". View attachment 59501

Good observation as this further prove the exchange determination in ensuring the safety of users fund and sustainability in this industry.

 

[BashirJasper]

Bitget's PoR is quite satisfactory. Unlike most of the exchanges, Bitget holds their reserve fund more on BTC..... Which is quite good to consider "Trustworthy". View attachment 59501

Hmm!! This is quite a surprise because most exchanges hold large proportion of their reserve asset in their native token which is not the case. Anyways, I will take the initiative to confirm the reliability of this info through their publicly disclosed cold wallet found on Nansen.ai

 

[Isi24]

Ftx almost left me bankrupt as a trader , good thing I have been able to recover most fund’s through actively engaging in trade competitions like the just concluded kcgi