OKX, a popular crypto exchange, has released its third monthly Proof of Reserves (PoR) report. It discloses $7.2 billion held in its wallets, which consist of Bitcoin (BTC), Ethereum (ETH), and USDT. information from CryptoQuant It indicates that OKX has the largest amount of clean asset reserves among the major exchanges.
What is Proof of Reserves?
PoR It is a way to verify that a cryptocurrency exchange or company has 1:1 backing across the digital assets it holds on behalf of clients. The cryptocurrency community has been pushing for exchanges to provide certificates on their holdings in the wake FTX breakdown last November.
One way to implement authentication is with the PoR protocol which uses a Merkel tree Evidence of merging large amounts of data into a single hash to verify the integrity of the dataset. OKX was one of the first to use this method to prove its immutability. The exchange issued two proof-of-ownership reports by the end of December.
OKX states that asset reserves are considered “clean” when a third-party analysis determines that the reserves do not include a native token of the exchange and consist exclusively of “traditional” cryptocurrencies with a higher market cap such as BTCAnd ETHAnd USDT.
CryptoQuant reveals it Dorpet It is the only exchange with 100% clean asset reserves, although its volume is much less than $1.4 billion. Crypto.comAnd ByBitAnd binance are 95.51%, 91.2%, and 87.6% ‘clean’, respectively. The aforementioned exchanges have a portion of their reserves stored in their own tokens, which are not considered a “clean collateral”. This led to a decrease in its ratings.
OKX asset breakdown
New features in today’s report include detailed asset analysis. This shows that OKX is covered by additional collateral with a reserve ratio of 105%, 105%, and 101% for BTC, ETH, and USDT, respectively. As of January 18, 2023, OKX users held 117,682 BTC, 1,178,993 ETH, and $2,955 million USD.
OKX has published more than 23,000 titles for its Merkle Tree PoR program. It also enabled users to self-check the exchange’s reserves and liabilities using untrusted tools on the OKX website. Additional holdings of the stock exchange can be viewed at OKX Nansen dashboard.
Transparency and security
OKX’s Director of Financial Markets, Lennix Lai, said the exchange “has never misappropriated user assets before and never will.” To provide more transparency and avoid scenarios similar to what happened with FTX, the cryptocurrency exchange is also planning to use Zero-Knowledge Proof (ZKP) technology.
OKX boasts a trading volume of over $1.8 billion in the last 24 hours and is the third largest cryptocurrency exchange globally at the time of writing, according to Queen Gekko.
PoR has received increased attention following the FTX fallout, and regular releases of PoR reserves can enhance transparency. It is important to be aware that these reports may not provide a complete understanding of crypto companies. As such, it is recommended to research and verify any information before dealing with a crypto company.