Huobi Becomes Latest Crypto Exchange to Reveal Proof-of-Reserves – Exchange Bitcoin News
Huobi, the Seychelles-based crypto exchange, recently became the latest digital asset exchange platform to disclose the number as well as the value of its digital assets held in reserves. Huobi has said that disclosing the assets held in reserves helps increase user confidence in the exchange, as well as improve transparency.
Huobi’s ‘exhaustive overview’
Seychelles-based cryptocurrency exchange Huobi became the latest digital asset exchange to attempt to allay user concerns when it unveiled its so-called “proof of reserves” on November 12. As shown in Huobi’s “exhaustive inventory” of digital assets held, the crypto exchange held around 32,000 BTC, 274,000 ETH and 820 million USDT stablecoins, as well as 9.7 billion TRX tokens.
In addition to revealing the USD value of digital assets – $3.5 billion – Huobi also shared a snapshot of the list of addresses where the funds are kept. Huobi’s disclosure of its digital asset holdings came just two days after FTX, accused of misusing crypto customers’ funds, filed for bankruptcy.
In a statement, Huobi, which was acquired by About Capital buyout fund in October, suggested that such disclosure helps to reassure worried users. Before Huobi unveiled its proof of reserves, other crypto exchanges such as Binance, Crypto.com, Deribit, Kucoin and Okx have all provided their respective proof-of-reserves (PORs) via the Merkle tree and full audits. As mentioned in the report, when crypto exchanges display PORs, this enables users to track their token holdings and transactions.
Meanwhile, the crypto exchange said it would further increase user confidence by making the display of POR a routine practice going forward.
“To further increase user confidence and accelerate our efforts to improve transparency, we are working to conduct a new Merkle Tree Proof of Reserves audit with a third party within 30 days,” the crypto exchange said in a statement.
What are your thoughts on this story? Let us know what you think in the comments section below.
Image credit: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or an endorsement or recommendation of products, services or companies. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on content, goods or services mentioned in this article.
