On the 22nd of December, OKX, the third-largest cryptocurrency exchange by trading volume, published its Proof-of-Reserves report, the second one in just two months. The report claims that OKX, a Seychelles-based crypto exchange, has a 101% reserve ratio of Bitcoin and Tether, while a 103% reserve ratio of Ethereum as of the 20th of December.
In today’s report, the cryptocurrency exchange claimed that it would publish such reports monthly on approximately the 22nd day of each month going forward as part of a commitment to transparency. OKX also added several new features to its exchange platform, such as allowing users to view OKX reserve ratios for both new and historical data. According to OKX, users can also download this reserve ratios data if they choose to self-verify on-chain assets.
It’s not the first time that a cryptocurrency exchange, OKX, is trying to build trust with its customers, as several other cryptocurrency exchange platforms are also doing the same job. This trust with customers has been lost after the collapse and bankruptcy of FTX, which was once the biggest crypto exchange in the world and now is nothing. Since FTX’s collapse, several firms, including KuCoin, Crypto.com, and Binance, have been releasing proof-of-reserves audits to boost user confidence.
However, these proof-of-reserves report measures have been called into question by many important voices in the space. According to a report from the Wall Street Journal, Paul Munter, the acting chief accountant of the SEC, the US Security and Exchange Commission, told that it is warning investors to be very wary of some of the claims that are being made by cryptocurrency exchange platforms and crypto-related companies.
Paul suggested that investors should not place too much confidence in the mere fact a company says it’s got a proof-of-reserves from an audit firm. These audit firms don’t provide enough information for an investor to assess whether the company has sufficient assets to cover its liabilities, Paul added.
