'Trust Us': OKX Plans To Release PoR Reports Every Month On Heels Of FTX Collapse

Zinger Key Points
  • OKX has a BTC reserve ratio of 101%, a tiny decrease from the first report made public on Nov. 22.
  • French audit company Mazars was criticized for lack of details in its recent proof-of-reserves report for Binance.

OKX, the world’s second-largest crypto exchange by trading volumes, has released its second proof-of-reserves (PoR) report to prove that it has enough assets to handle customer withdrawals.

As of Tuesday at 12:00 UTC, OKX's wallets had 113,754 Bitcoin BTC/USD, worth $1.87 billion, compared to a user balance of 112,192 BTC.

This translates into a BTC reserve ratio of 101%, a tiny decrease from the 102% stated in the first report made public on Nov. 22.

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While Ether's ETH/USD reserve ratio increased slightly to 103% from 102%, the reserve ratio for the top stablecoin, Tether USDT/USD, remained constant at 101%.

BTC, ETH, and USDT make up more than 90% of holdings, according to exchange addresses monitored by analytics company Nansen.

To demonstrate that the custodian, in this case, OKX, is not lending out customer funds, unlike defunct crypto exchange FTX FTT/USD, and has the assets it claims to hold on behalf of its users, cryptocurrency exchanges have adopted an audit technique known as proof of reserves after the collapse of the Sam Bankman-Fried led firm.

Disclosure of liabilities and internal quality standards has become a key issue in the cryptocurrency community.

For instance, French audit company Mazars was criticized for lack of details in its recent proof-of-reserves report for Binance regarding the exchange's method for selling assets to pay off margin loans.

In a press statement, OKX stated that it would provide proof of funds on the 22nd of every month to gain consumer confidence and enable users to audit its 23,000 addresses, which the exchange wants to continue using, going forward.

The exchange's health and the security of users' assets may now be evaluated by users by allowing them to view and download both the old and new reserve ratios.

“Publishing PoR results on a monthly basis strengthens our commitment to lead the industry when it comes to transparency and trust,” Chief Marketing Officer Haider Rafique said in the release. “At OKX, we believe that PoR should be verifiable via open source tools so that users can self-verify the balances and ownership of our reserve addresses."

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Posted In: CryptocurrencyNewsTop StoriesMarketsAnalytics company NansenAudit companyBinancecrypto exchangeCryptocurrency ExchangeCustomer withdrawalsMargin loansMazarsOKXOpen-source toolsproof of reservesReserve addressesSam Bankman-FriedStablecoinTrading volumesTransparencytrust
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