The OKX exchange disclosed the contents of its reservations in a report published on its website. According to blockchain analytics firm CryptoQuant, OKX’s proof of reserves is the most reliable among the largest crypto exchanges in the industry.
OKX has $7.5 billion in its coffers
Since the fall of FTX, investors have become more demanding of exchanges regarding the contents of their reserve portfolio. A point, in the past, which has been much neglected. However, since the FTX scandal, some exchanges have started this transparency operation to maintain user confidence. Between November and December, there were many (Coinbase, Binance, ByBit, Crypto.com) to find out their evidence of reserve.
This Thursday is the turn of the OKX exchangewhich revealed the contents of her spare wallet. According to what can be read in the report shared by the crypto exchange, it would hold $7.5 billion in digital assets in its vaults. OKX specifies that its reserves are more than 100% guaranteed. The exchange is said to be in possession of 123,914 BTC, 1,233,714 ETH and 2,979,866,301 USDC.
In its report, OKX also explains how its backup proof works. The exchange has even put in place a small guide to help each of its users check if their assets are really included in the Tree Tree.
“We use a verification method called Merkle Tree, a data structure designed to securely encrypt data, to verify all user assets held on the exchange.”
The best proof of reserve to date?
While it is true that many exchanges have submitted their proof of reserve, the veracity of its content has not always been unanimous. 7
In December, a FUD was created around Binance finance while the Mazars firm audited the broker’s reserves. Same observation for Huobi, which was the first exchange to introduce its “PoR”. According to some experts, audit letters distributed by various platforms are not “audit reports” in the technical sense of the term.
Apparently, OKX’s backup proof would be the “cleanest” according to CryptoQuant. According to blockchain analytics firm, the PoR exchange is the only one of the largest crypto exchanges in the industry that does not consist of exchange tokens.
“A net reserve is the total reserve of any exchange, excluding the exchange’s native tokens. There may be a risk to exchange liquidity if a self-issued token holds a large percentage of the total reserve amount. Therefore, we have applied our own reserve to transparently visualize the liquidity of each exchange. »
Accurate CryptoQuant to confirm his argument.
Finally, if you want to know more about backup proof, check out our full guide on this.
Moral of the story: Quality is not always what people choose. Despite OKX’s own supposed reserves, Binance remains the preferred choice for crypto investors with over 90% of the industry’s volume.
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