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.
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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.
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.”
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.