Recently CoinMarketCap(CMC) has started to provide Exchange’s Proof of Reserves after FTX's miserable collapse.
At the first glance, it looks very transparency and fair for cutomers and crpto industry relavants.
CMC provides trhough POR feature,
🔹The Total Asset
🔹Public Wallet Address Ownership
🔹Balance, Price & Value of Public Wallets
🔹Updated Every 5 Minutes!
🔹The data of the market pairs
But many experts and financial analysts say it is not a proof of reserves.
It doesn't include liabilities and it is just an unproven claim about some assets in cold wallets.
"Reserves" = assets minus liabilities
"Reserves" != list of wallets
The Proof of Reserves AUDIT requires cryptographic proof of client balances and wallet control.
ProofOfReserves audit must have:
- sum of client liabilities (auditor must exclude negative balances)
- user-verifiable cryptographic proof that each account was included in the sum
- signatures proving that the custodian has control of the wallets
by Jesse Powell, Co-Founder of Kraken
Headwinds of this poor and unclear gesture from some exchanges are already coming in this tough crypto time.
This is cool at least someone has more analytic data to work with when trading