Crypto exchange OKX releases second proof of reserves
The exchange’s reserves attestation comes only a month after it released its first one and is intended to promote greater transparency in the crypto industry.
Crypto exchange OKX has released its second proof of reserves (PoR) on its website, only a month after releasing its first one.
Haider Rafique, chief marketing officer at OKX, said on Twitter that the crypto exchange is committed to sharing its reserves status every month.
NEW #OKX #proofofreserves published TODAY. This is our 2nd PoR published and we commit to publishing monthly ✅
A quick overview of our PoR and new features….
— Haider (@Haider) December 23, 2022
The announcement also included the rollout of a new feature that allows “users to view OKX reserve ratios for new and historical data,” self-verify on-chain assets, and download new and historical data, Rafique said.
OKX’s second proof-of-reserves ratios indicate that the exchange has 101% of Bitcoin (BTC), 103% of Ether (ETH) and 101% of Tether (USDT) needed to handle all withdrawals of these cryptocurrencies. The exchange’s previously released PoR attestation from a month ago indicated that OKX had 102% of the BTC and ETH, as well as 101% of the USDT, needed to handle all withdrawals.
The exchange hopes releasing monthly proof-of-reserves reports will help promote transparency and reestablish trust between users and cryptocurrency exchanges following the sudden collapse of FTX.
Rafique shared: “Publishing PoR results on a monthly basis strengthens our commitment to lead the industry when it comes to transparency and trust.”
Related: OKX releases proof-of-reserves page, along with instructions on how to self-audit its reserves
The announcement came shortly after a senior official from the United States Securities and Exchange Commission warned investors to be “very wary” about relying on a crypto company’s “proof-of-reserves.”
In a Dec. 22 interview with The Wall Street Journal, the SEC’s acting chief accountant, Paul Munter, shared that the results of these audits aren’t necessarily an indicator that the company is in a good financial position. According to him, proof-of-reserves reports by exchanges “lack” sufficient information for stakeholders to determine whether the company has enough assets to meet its liabilities.
