The OKX exchange disclosed the content of its reservations in a report published on its website. According to analytics firm CryptoQuant, OKX Proof of Reserve is the most trusted among the largest crypto exchanges in the industry.
OKX has $7.5 billion in its treasury
Since the FTX crash, investors have become more demanding of exchanges regarding the content of their reserve portfolios. A point in the past that was too neglected. However, since the FTX scandal, several exchanges have started this transparency operation to maintain user confidence. Between November and December, many of them (Coinbase, Binance, ByBit, Crypto.com) submitted their proof of reserve.
This Thursday, it was the turn of the OKX exchange, which revealed the contents of its reserve portfolio. According to what can be read in a report published by the crypto exchange, $7.5 billion worth of digital assets will be stored in its vaults. OKX indicates that its reserves are more than 100% guaranteed. The exchange reportedly owns 123,914 BTC, 1,233,714 ETH and 2,979,866,301 USDC.
In its report, OKX also explains how proof of reserve works. The exchange even posted a little guide to help each of its users check if their assets are indeed included in its “Tree”.
“We use a validation method called Merkle Tree, a data structure designed to securely encrypt data, to validate all user assets held on the exchange. “
posted by OKX
The best proof of reserve to date?
While it is true that many exchanges have presented their evidence of the reserve, the authenticity of the contents of this has not always been unanimous. 7
FUD was created around Binance’s finances in December as Mazars audited the broker’s reserves. The same observation for Huobi, which was the first exchange to introduce its “PoR”. According to several experts, the audit letters exchanged between different platforms are not “audit reports” in the technical sense of the word.
From the looks of it, the OKX reserve proof will be the cleanest according to CryptoQuant. According to the blockchain analytics company, the exchange’s PoR is the only one among the largest crypto exchanges in the industry that does not consist of exchange tokens.
“Net reserve is the total reserve of each exchange, excluding the exchange’s own tokens. There may be an exchange liquidity risk if the self-issued token holds a large percentage of the total reserve. Therefore, we have applied our own reserve to transparently visualize the liquidity of each exchange. »
Specifies the CryptoQuant to validate its argument.
Finally, if you want to learn more about reserve confirmation, check out our complete guide to it.
Moral of the story: Quality is not always what people choose. Despite OKX’s supposed native reserves, Binance remains the preferred choice for crypto investors with over 90% of the industry’s volume.
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