Major cryptocurrency exchange platforms Kraken, Coinbase, and Gate.io have publicly disclosed their proof of reserves along with their company liabilities. These companies shared the liability as a part of the company’s audit and evaluation of the actuality of the company’s monetary stability in the market.
The companies has disclosed these details to the public to maintain the level of trust and authenticity in the foundations of the company.
The process of disclosure of proof-of-reserves was initiated by cryptocurrency exchange Binance last week, after the collapse of the cryptocurrency exchange platform FTX. The crypto industry has been shaken by the loopholes in the internal workings of these crypto companies, that’s why the CEO of Binance Changpeng Zhao has suggested all the cryptocurrency exchange platforms issue the proof of reserves into the public domain and make sure that all the Cryptocurrency industry is having strong foundations.
Although this initiative was started by Binance, the company itself has not issued its liabilities into the public domain just like Kraken, Coinbase, and Gate.io have outlined the company liabilities in the public domain.
These profits of reserves were issued with the help of Merkle-tree’s blockchain methodology in which the stake of proof of reserves can be evaluated with the help of hash node values. Just like Binance the cryptocurrency exchange platform “Bitfinex” also disclosed its proof of reserves only and not the liabilities of the company with the help of the Merkle-tree procedure.
Some other crypto companies like MexcGlobal and ByBit Announced that they will disclose their proof of reserves, but they haven’t mentioned if they will be published in the liabilities along with them.
Major cryptocurrency exchange platforms like Crypto.com and Huobi have already issued their proof of reserves into the public domain. These two companies also announced that they will soon be publishing the liabilities attached to their proof of reserves.
The crypto companies like OKX and Mexc global Have not provided their proof of reserves yet and they announced that they will be publishing these details very soon in the public domain.
The cryptocurrency market has been already shaken by The Fall of cryptocurrency this year and has been grappling with the fall of major cryptocurrencies like Bitcoin and Ethereum along with the recent fall of cryptocurrency exchange companies FTX, which has resulted in the decreased trust factor in the Crypto industry by all the retail investors.
Binance has taken this step along with all the other companies in the market, to negotiate the situation and invite the trust factor cryptocurrency exchange company.