8 months ago
42 ARTICLE AD
With its monthly provision of PoR, which allows users to estimate the company’s health, the exchange has continued to prove to users that their funds are safe.
In a bid to increase transparency after the 2022 market headwind, crypto exchange OKX has continued to publish its Proof of Reserves (PoR) every month, showing the company’s portfolio and how much it holds in various digital assets.
On March 27, 2024, the exchange published its latest report, the 17th PoR since the downfall of FTX and the Terra (LUNA) fiasco in 2022. It shows a balance of $22.2 billion in primary assets backing users’ funds.
User Assets Are Backed 1:1
According to the official press release, the exchange has maintained a reserve ratio surpassing 100% in 22 of the most traded cryptocurrencies on the platform.
Some of these assets include Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), Litecoin (LTC), Tether’s stablecoin USDT, and Ripple’s XRP.
The PoR shows that the exchange has a record of a total BTC reserve of 102%, ETH 104%, USDT 106%, and USD 110%. It also demonstrates the exchange is overcollateralized and users’ assets are backed 1:1 on the platform. In its February report, OKX demonstrated a strong balance sheet of $17.7 billion in primary assets with an average reserve ratio of 104%.
At the time, BTC was backed over 100% to 103%, while ETH and USDC stood at 104% and 104%, respectively. USDT, on the other hand, achieved the highest record of 105%.
Commitment to Transparency
With its monthly provision of PoR, which allows users to estimate the company’s health, the exchange has continued to prove to users that their funds are safe. Commenting on the latest report, the company’s chief commercial officer, Lennix Lai, said the latest reserve reinforces the exchange’s commitment to transparency.
“Our 17th consecutive PoR reinforces our commitment to trust-building and transparency in the crypto ecosystem. As global crypto adoption accelerates, we believe mechanisms like PoR, which aim to enhance security and transparency, will play a critical role in onboarding the next wave of users,” said Lai.
Lai further stated that OKX has achieved numerous milestones since the inception of the PoR mechanism. The firm has received the highest quality rating among major exchanges, according to blockchain expert Nic Carter.
Not the First
Meanwhile, OKX is not the only crypto exchange in the industry that has bought into the idea of publishing PoR following the FTX collapse as a way to improve transparency in the industry.
Binance was the first exchange to publish its PoR audit report after its then-CEO Changpeng Zhao (CZ) suggested the concept. The company initially published only its BTC reserves before subsequently including other cryptocurrencies. Other companies, such as Bybit, KuCoin, CryptoCom, Bitfinex, Gate io, Kraken, and Huobi Global, now known as HTX, have participated in the program and released their various reserves to the public.
In 2022, CoinMarketCap, a blockchain market researcher and tracker, rolled out a new feature on its platform to aid the exchange’s mission to provide accurate data to enhance transparency in the crypto space.
