CoinMarketCap Launches Test of Exchange Reserves
CoinMarketCap has announced the launch of a Proof of Reserve Tracker for Cryptocurrency Exchangesaccording to a new tweet.
NEW #CMC Feature: Exchange’s Proof of Reserves 🏦
Proof of Reserves (PoR) provides transparency to #cryptocurrency reserves through a verifiable auditing practice.
— CoinMarketCap (@CoinMarketCap) November 22, 2022
This tool provides users with an easy way to keep track of exchange reservations.displaying a list of total assets and public wallet addresses, along with the balance and value of each listed wallet.
Today it was announced that the market researcher and tracker A leader in the cryptocurrency industry has added a feature to its platform that will allow users to update their financial knowledge Exchange by Exchange.
An independent Proof of Reserves (PoR) tracker is used to audit the liquidity levels of cryptocurrency exchanges over a given period of time for transparency purposes. The announcement claims that the tracker details the company’s total assets, as well as its associated public wallet addresses, along with their current value, balances, and current price, as well as the balances of the wallets listed on the tracker.
According to CoinMarketCap, PoR trackers will update the data every five minutes. On November 22, the company posted a guide on Twitter explaining how to use the tool and how to navigate through it.
Among the five Twitter threads at the time, Binance, whose combined wallet address contains more than $65 billion, was used as the initial example.
It is important that exchanges provide proof of reserves to their clients providing the number of reserve assets they have to cover potential withdrawals from their clients.
Proof of reserves is a method of verifying that a cryptocurrency exchange or portfolio has the reserves it claims to have., checking the balances in the Exchange or portfolio. As a result, fraud is prevented and the user’s personal information is protected.
It is possible to prove reserves in a number of ways, but the most popular is for an exchange or wallet to offer a statement confirming that the money it claims to hold actually exists and is not fraud. This test can be checked by anyone to ensure that the exchange or wallet is not just making up numbers out of thin air.
For cryptocurrencies to become a more trustworthy and open ecosystem, proof of reserves should be adopted as the new benchmark to increase user trust. However, it is necessary to wait and see if the new solutions can contribute to making the ecosystem more transparent in the future.