Exchanges must show their credentials – The case FTX Will it mark the beginning of a new era in cryptocurrency ? On the level of others platforms in any case, the reactions multiply in an attempt to to calm users about the reliability or solidity of the companies in question. And the future solution could be called Proof of Reserve, a concept revived by the CEO of Binance in a recent statement. Insure users and investors at any price with maximum transparency is the new buzzword for centralized crypto players. We explain to you.
Avoid at all costs a general crisis of confidence in the ecosystem
The misleading statements of Sam Bankman-Fried will not only have harmed the unfortunate users of their crypto platform, they will have started as well confidence the public. The main players in the sector therefore seek to limit damage and as quickly as possible.
Changpeng Zhao (CZ), CEO of Binance, has already taken the lead in suggesting that exchanges can prove which they have in Reserve corresponding to funds deposited by users. This concept, called Reserve certificate Where proof of funds, could be a solution. Immediately, several platforms can OKX Where Kucoin have also announced that they want to use this tool.
Like thisOKX posted the following message:
“For OKX, transparency, risk management and consumer protection come first. We are recruiting Armanino for an audit and will publish a Merkle tree as audit proof of funds as soon as possible. Here are already 23 BTC addresses (…) and 13 Ethereum addresses (…) as part of our reserves to be checked by all users. »
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Reserve certificate as a guarantee for users?
And in continuation of the message thread, OKX actually joins the addresses of some wallets held by the platform. This level of transparency is unheard of for one broker and it lives up to users’ fears. As a reminder, the Merkle tree is a term used in the industry to refer to a data structure – accessible to all – to collect a large amount of anonymized information, which makes it possible to compare customer balances with the total balance on the stock exchange.
The managing director of Kucoin, Johnny Liualso made a similar statement, speaking of a reserve certificate must be delivered within one month. He also mentioned a company ofrevise recognized in the financial community to perform the audits. He then wished to publish a message of encouragement to the community:
“I would like to express my condolences to everyone who has been affected by the current situation at FTX. Hopefully everything can be resolved quickly and the industry can get back on track. »
The eagerness of the major players in the ecosystem to communicate on these different tools allows prove their solvency shows the extent to which the crisis of confidence is real. The road will be long to rebuild a healthy relationship with customers, and this is why OKX, Kucoin and even the kraken have already adopted these new tools. It would still be necessary for the bad news to stop coming out behind each other to see a clearing.
If CZ inspires CEOs of other exchanges, you can count on him! Register quickly on the Binance platformTHE absolute benchmark in the sector (commercial link).