22 Nov 2022
To monitor cryptocurrency exchanges' reserve levels, CoinMarketCap has released a proof-of-reserve tracker
By displaying the total assets and public wallet addresses, along with the balance and value of the wallets displayed, the tool enables users to keep tabs on the reserves of exchanges.
Leading market researcher and tracker in the cryptocurrency sector, CoinMarketCap, recently announced the launch of a new feature on its platform that provides users with up-to-date financial insights on exchanges.
The industry's active cryptocurrency exchanges are examined by the proof of reserves (PoR) tracker for transparency regarding liquidity at any given time.
The tracker provides information about the company's overall assets, as well as the wallets' associated public wallet addresses, balances, and values.
Every five minutes, according to CoinMarketCap, the PoR trackers will update their data. The business tweeted a user manual for the tool on November 22.
With over $65 billion listed in its combined wallet addresses, Binance was the initial example in the five-part Twitter thread.
The following exchanges also provide PoR data: KuCoin, Bitfinex, OKX, Bybit, Crypto.com, and Huobi.
Changpeng "CZ" Zhao, the CEO and co-founder of Binance, retweeted the CoinMarketCap development and included a link to Binance's page.
On Twitter, some crypto community members have referred to this feature as a "great transparency addition."
Following the ongoing FTX liquidity and bankruptcy crisis, CZ was among the first to promise to provide evidence of reserves.
It released a proof of assets on November 10 that featured wallet addresses and activity.
Then, CZ tweeted that what is currently available is only the first version of what will soon be made available via Merkle Tree PoR.
Many other platforms in the space started disclosing their financial reserve and liquidity information to be more transparent after Binance set the example.
Some of the first companies to release their data were Chainlink Labs, Bitfinex, and Bybit.
Grayscale, a provider of cryptocurrency investment products, has chosen to withhold its on-chain PoR, citing security concerns.
It did disclose a letter confirming the full backing of Grayscale's cryptocurrency holdings, but it withheld the wallet addresses.
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