Key highlights:
- Crypto.com unveils plans to release its audited proof of reserves, reflecting its commitment to transparency
- Reports suggest that the move was triggered by the recent crash of FTX
- Binance had also disclosed plans to provide a Merkle tree-based proof of funds in the coming weeks to prove its commitment to transparency
Leading cryptocurrency exchange Crypto.com has announced plans to release an audited proof of reserves to show its commitment to transparency. The exchange’s CEO Kris Marszalek had taken to Twitter on Thursday to reveal the plan. His tweet reads:
“We share the belief that it should be necessary for crypto platforms to publicly share proof of reserves and Crypto.com will be publishing our audited proof of reserves.”
Crypto.com to publish audited proof of reserves
According to a Thursday report from Bloomberg, Crypto.com has joined the list of cryptocurrency exchanges set to provide their proof of audited reserves.
Apparently, the move confirms that the fast-growing crypto firm is leading with transparency. Hence, the move serves as a measure to boost the confidence of users on the exchange.
Per the report, the recent crash of popular cryptocurrency company FTX has triggered a major concern for transparency. Hence, these concerns represent a driving force that has geared Crypto.com to exhibit transparency at its peak. As such, the firm is set to prove this by unveiling its audited proof of reserves.
Speaking on its proposed move, the firm expressed its belief that it is a critical moment for the entire industry. Thus, it has necessitated the need for transparency more than ever. The company stressed that the safety and security of users and funds remains the priority, and requires full and collective commitment.
Binance to debut Merkle tree-based proof of funds
Although Crypto.com is the latest crypto firm to plan on publishing an audited proof of reserve, it is not the first to express intentions to embark on the trend. Notable exchanges are considering a need to hop on this move to revive the hopes of investors on the fate of cryptocurrencies.
The world’s largest cryptocurrency exchange by volume Binance, had also disclosed plans to release a Merkle tree-based proof of funds.
The move also follows the platform’s concern to boost its users’ trust considering the massive crash of FTX that has triggered the need to prioritize transparency. Binance revealed it is on an ongoing commitment to transparency, hence it is set to publicly display details of the firm’s hot and cold wallet addresses.
Binance revealed it will be releasing its merkle tree-based proof of funds in the coming weeks. Meanwhile, it has already unleashed snapshots of its Bitcoin, Ethereum, Tether USDT, Binance USD, USD Coin and BNB balances.
