CoinDCX Reveals Assets Worth $124M Under Proof of Reserves
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CoinDCX, a cryptocurrency exchange supported by Coinbase, published its reserve certificate in cooperation with Nansen on November 24. This was due to the increased desire of cryptocurrency investors around the world for exchanges to be transparent about their operations.
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At a glance, the data reveals CoinDCX’s total net worth along with its token and protocol allocation, its asset value, and its cumulative profit and loss. Tokens such as Bitcoin, Ethereum, Shiba Inu, Matic and ADA are among its most valuable assets today.
In an official statement, CoinDCX founder Sumit Gupta also claimed that they are working with CoinMarketCap on the recently added reserve tracking program.
Talking about proof of reserves, Sumit further stated that
“Although this is a big step for us as a company, I also believe that this is only part of the picture. The liability must be equally visible to ensure a healthy Reserves to Liability (R2L) ratio.”
Speaking about the future stages of the exchange, Sumit referred to the creation of a system that would evaluate which coins should be included in future listings. In its roadmap, the company is expected to take further steps to increase transparency and increase reporting of various parameters, including proof of liability.
1/5 transparency; the currency of trust at @CoinDCX.
I’ve said this a few times in the past few days and I’ll say it again – we want to do everything we can to ensure that CoinDCX users are completely safe.
— Sumit Gupta (CoinDCX) (@smtgpt) November 24, 2022
The best exchanges rush to offer reserves
As previously reported on CoinGape, top crypto exchanges such as OKX, Gate, Kraken, Huobi, Crypto(.)com have already released their reserve certificates either partially or fully.
Read more: Exchanges Line Up Tp Confirm Bookings
Gate.io became the first mainstream exchange to openly submit to an independent third-party audit to present proof of reserves in 2020.
Origin of the certificate
The rush to reveal reserves comes after CZ, CEO of Binance, addressed the issue of crypto exchanges using fractional reserves like traditional banks.
Read more: Binance will start proofing bookings for full transparency
Instead, he suggested using the “Merkle Tree Proof of Reserves” to keep it open to the public. Merkle Trees actually refer to a data structure authenticated by means of cryptography. Presumably, this method of exposing a proof of reserve represents an audit trail that cannot be tampered with.
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