Following the crash of the FTX exchange, many crypto exchanges are now urged to use Proof-of-Reserves as a means of transparency.
To begin with, Crypto.com announced that it will publish proof-of-reserves given the necessity of having transparency with its community.
CEO of Crypto.com Kris Marszalek stated that the company will now publicly share audited proof of reserves. This will allow anyone to see the financial situation of the exchange, especially regarding liquidity and solvency,
A few days ago, Binance also announced that they will share proof of reserves with the public given the FTX scandal, which led to users losing millions of dollars worth of cryptocurrencies.
Due to the decline of Solana as well, Crypto.com suspended USDC and USDT deposits on Solana. Nonetheless, Crypto.com did not cease withdrawals.
Even though Anatoly Yakovenko, founder of Solana, denied any affiliations with FTX and that Solana Labs had any assets on FTX, the price of SOL has been declining at a large rate in the last few days.
Other Crypto Exchanges Commit to Proof-of-Reserves
Given recent events, other exchanges are going to use proof-of-reserves. Kraken, Bitmex, Gate.io, and some others were already publicly sharing proof-of-reserves.
Now, OKX and KuCoin will join the rest due to the urgency of being transparent to the public.
OKX announced that they hired Armanino auditing firm to audit and publish the exchange’s proof-of-reserve as a guarantee to the public that the exchange has solvency.
OKX and Binance also called other exchanges to act in favor of customers and be as transparent as possible.
Johnny Lyu, CEO of KuCoin, announced that also KuCoin will undergo auditing processes to prove to its customers that the exchange is healthy in the financial aspect.