Binance adds 11 tokens to PoR, claims $63B in reserves

In accordance with an announcement on Mar. 7, cryptocurrency trade Binance has added a further 11 tokens to its proof-of-reserves (PoR) report. These embrace MASK, ENJ, WRX, GRT, CHR, CRV, 1INCH, CVP, HFT, SSV, and DOGE. With the most recent replace, Binance says it now has over $63 billion throughout 24 property in its proof-of-reserves system. The biggest property on the trade embrace Bitcoin (BTC), Ethereum (ETH), and Tether (USDT), with $12.7 billion, $7.1 billion, and $16.3 billion in web buyer balances, respectively.

Though exchanges have begun adopting the PoR technique for higher transparency within the wake of cryptocurrency trade FTX’s collapse, consultants have repeatedly warned customers of the constraints of such methodology. These embrace lack of expertise on use of leverage, collateralization, and corresponding proof-of-liabilities and can’t be revealed except accompanying monetary statements complement the PoR.

As advised by Binance, its PoR “makes use of Merkle timber so as to add up on-chain information, in order that customers can relaxation simple understanding that their property are held for them 1:1 in our custody.” In Feb. 2023, the trade made a serious replace to its PoR system, implementing zk-SNARKs, which Binance says will ” improve the privateness and safety of consumer information through the verification course of.”

Cointelegraph beforehand reported on Dec. 16, 2022, that South African auditor Mazars eliminated Binance’s PoR audit from its web site and ceased such providers for crypto exchanges altogether. The agency beforehand stated on Dec. 7 that Binance’s Bitcoin and cross-chain Bitcoin property have been “totally collateralized.” on the time. Nonetheless, Mazars’ additionally acknowledged that its strategies have been based mostly on “agreed-upon procedures” (AUP) and didn’t represent a monetary audit. The AUP was additionally restricted in scope because it didn’t examine different tokens. 

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