Along with other significant cryptocurrency exchanges, Bybit and Huobi have made their proof of reserves available to the public. Major cryptocurrency exchanges have been revealing evidence of the resources they have in order to reassure investors.
Therefore, withdrawal restrictions have been put in place on platforms affiliated with them and elsewhere due to the collapse of the cryptocurrency exchange FTX and its affiliated businesses.
Binance was one of the first exchanges to disclose the contents of its cold wallet reserves, revealing that it had about $40 billion worth of stablecoins on hand. Bitfinex, OKX, and Kucoin were among the exchanges that quickly adopted this strategy.
85% Or Above Of Bybit Balances Are Based On Blue-Chip Assets
Bybit and Huobi have reportedly also made their proof of reserves available, according to a report by Wu Blockchain. These revelations occur as withdrawals are suspended by exchange after exchange as a result of the FTX collapse’s effects.
Exchange representative who provided details on the make-up of the exchange’s reserves. As per the spokesperson, In that order, Bybit’s most significant holdings at the time of publication are USDT, BTC, ETH, and USDC. In addition, the exchange holds more than 50% of the total in stablecoins, and these blue-chip assets make up over 85% of Bybit reserves.
Moreover, the platform’s decision to make its proof of reserves public was also addressed in a statement by Ben Zhou, the CEO and co-founder of Bybit.
Bybit is committed to an industry-wide, fully transparent proof of reserves (PoR) solution that proves beyond a reasonable doubt that we hold our client’s funds in custody and are deserving of their full trust,
Zhou said.
Reserves Documentation Formats
By releasing the balances of their cold wallets, many of these exchanges have provided proof of reserves. By using Merkle tree algorithms, they are also working to provide them.
Binance CEO Changpeng Zhao provided the algorithm’s definition during a recent AMA. It’s “a mathematical technique,” he said,
that allows consumers to ensure themselves that their finances include a grand total.
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However, Zhao noted that since they are currently in extremely high demand, this typically calls for a third-party auditor. Zhao stated,
This is the reason we made all of our cold wallets addresses public, but it’s not as good as a Merkle tree.
Zhao reported having a conversation with Vitalik Buterin, co-founder of Ethereum, about developing “some sort of new proof of reserves protocol.” He suggested Binance as a venue for the initial test case, which might occur in “a few weeks.”
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