Following the FTX Collapse, CoinDCX revealed their proof of reserves.
The data reveals CoinDCX's net worth, token and protocol allocation, asset value, and profit and loss. Tokens like Bitcoin, Ethereum, Shiba Inu, Matic, and ADA are valuable.
In collaboration with Nansen, the Coinbase-backed cryptocurrency exchange CoinDCX issued its proof-of-reserves on November 24. This coincided with a rising global demand from cryptocurrency investors for exchanges to be open about how they operate.
At a glance, the information shows CoinDCX's entire net worth, token and protocol allocation, asset value, and cumulative profit and loss. Among its most valuable assets right now are tokens like Bitcoin, Ethereum, Shiba Inu, Matic, and ADA.
Sumit Gupta, the founder of CoinDCX, also stated in an official statement that they will be working with comapnies to launch their recently added proof-of-reserves tracker.
Sumit continued, "While this is a huge milestone for us as a firm, I also believe this is just one part of the story," when discussing proof-of-reserves. To establish a healthy Reserves to Liability (R2L) ratio, liabilities must have comparable visibility.
When discussing the exchange's following stages, Sumit mentioned developing a unique algorithm that would assess which coins should be listed on the market. The corporation is anticipated to include more actions in its roadmap aimed at boosting openness and broadening reporting of numerous metrics, including their Proof of Liability.
Top cryptocurrency exchanges like OKX, Gate, Kraken, Huobi, and Crypto(.)com have already partially or fully revealed their proof-of-reserves, as was previously reported on CoinGabbar.
In order to demonstrate its proof-of-reserves in 2020, Gate.io is the first widely used exchange to voluntarily submit to an independent third-party audit.
After CZ, CEO of Binance, touched on the subject of cryptocurrency exchanges employing fractional reserves like traditional banks, there has been a rush to disclose reserves.
He suggested using "Merkle Tree Proof of Reserves" as a replacement to keep everything open to the public. Merkle Trees actually refers to a data structure that has undergone cryptographic validation. It is assumed that an unchangeable audit trail is reflected by this way of disclosing Proof of Reserves.