OKX currently released its 3rd monthly Proof-of-Reserves (PoR) report exhibiting $7.2 billion held by the exchange in Bitcoin (BTC), Ethereum (ETH), and the USDT stablecoin.
Citing knowledge from the blockchain analytics firm CryptoQuant, which displays PoR throughout the crypto sector, OKX explained this is the “most significant clear asset reserves among the big exchanges.”
As described by OKX, asset reserves are regarded “clean” when a third-party analysis—in this situation the metric provided by CryptoQuant—determines the reserves do not include things like an exchange’s native token and are designed up completely of higher-sector cap “traditional” cryptocurrencies such as BTC, ETH, and USDT.
For instance, CryptoQuant data displays that Deribit is the only other exchange to have 100% of cleanse assets reserves, whilst to a much lesser sizing of $1.4 billion.
Crypto.com is meanwhile 95.51% “clean,” adopted by ByBit and Binance with 91.2% and 87.6%, respectively. Each and every of these exchanges, as proven in the chart below, hosts a proportion of their reserves in their native tokens.
PoR refers to a process of verifying that a trading system or crypto firm does indeed have 1:1 backing across the digital property it retains in custody on behalf of its buyers.
The crypto community has been pressing for the exchanges to supply attestations of their holdings in the wake of the FTX collapse final November.
A person way to execute an attestation is by means of a PoR protocol that uses a Merkle Tree proof to integrate huge quantities of data into a one hash and verify the integrity of the data established. OKX was among the initial to use this process to show its balance as the exchange unveiled two PoR experiences by the end of December.
Breakdown of OKX’s assets
New characteristics in today’s report include a in depth breakdown of the property, exhibiting OKX is overcollateralized with a reserve ratio of 105% for BTC, 105% for ETH, and 101% for USDT.
As of January 18, 2023, customers held 117,682 BTC, 1,178,993 ETH, and 2,955,696,824 USDT.
OKX said it has released additional than 23,000 addresses for its Merkle Tree PoR method whilst enabling users to self-verify the exchange’s reserves and liabilities with trustless instruments on the OKX website.
The exchange’s supplemental holdings can be seen on the OKX Nansen Dashboard.
Speaking at an party held in Hong Kong nowadays, OKX’s director of financial marketplaces Lennix Lai claimed the trade “has hardly ever misappropriated consumer belongings just before and never will.”
To supply a lot more transparency and steer clear of scenarios similar to what took place at FTX, the crypto trade is also organizing to use zero-information-proof technology.
Boasting a buying and selling volume of above $1.8 billion in the past 24 several hours, OKX is currently the 3rd-largest cryptocurrency trade in the environment, according to CoinGecko.