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Crypto trade OKX has launched a proof-of-reserves web page that enables customers to audit its reserves to verify it’s solvent. This comes at a time when crypto exchanges are coming underneath larger scrutiny after the collapse of FTX. OKX introduced the brand new web page in a tweet, in addition to on its weblog.
Don’t belief, confirm → OKX Proof of Reserves (PoR) is LIVE.
To set a brand new commonplace of transparency, danger administration and consumer safety, we’re launching our first PoR.
Now you can confirm your property are backed 1:1 on #OKX ⤵️
Particulars
— OKX (@okx) November 23, 2022
The proof-of-reserves web page gives two completely different choices for customers to audit the trade’s reserves. The primary permits customers to get a quick abstract of the trade’s present reserves and liabilities for its high three cryptocurrencies: Bitcoin (BTC), Ether (ETH) and Tether (USDT).
This abstract presently signifies that OKX has 102% of the BTC and ETH it must deal with all withdrawals in these cash, whereas it says that it has 101% of the USDT wanted to deal with all Tether withdrawals.
The second choice is labeled “view my audit.” It permits the consumer to log in and look at a snapshot of their balances held on the trade. The corporate stated that these balances ought to be equal to these discovered on the asset overview web page within the app’s dashboard except the consumer has taken out margin loans.
Some customers could not belief the corporate’s internet app to provide them correct data, so the corporate has additionally offered two assist file paperwork that designate tips on how to audit the reserves utilizing the console on a PC. These paperwork are titled, “How you can confirm in case your property are included within the OKX Merkle tree?” and “How you can confirm OKX’s possession and stability of the pockets tackle.”
One of many paperwork defined tips on how to question the OKX app’s API to get a Merkle tree of buyer balances and examine it to balances publicly accessible on the blockchain. The opposite defined how customers can get a Merkle leaf of their very own balances and confirm that this leaf is a part of the bigger tree.
Within the press launch, OKX director of economic markets, Lennix Lai, expressed the view that this proof-of-reserves web page will assist to convey larger transparency to the crypto trade market:
“Our new proof of reserves web page and self-audit function give customers the power to confirm that their property are 100% backed. Third-party audits are additionally being carried out to offer extra reassurance on high of this. We imagine {that a} far larger diploma of transparency must be dropped at our business to permit us to construct again stronger after current occasions.”
Crypto trade FTX all of the sudden skilled a liquidity crunch from November 7-11, main the corporate behind it to declare chapter. In response to this occasion, a number of executives of main crypto exchanges have declared that proof-of-reserves pages are wanted to offer transparency in order that an occasion like this by no means occurs once more.
OKX had beforehand acknowledged that it might present proof of reserves “asap.” KuCoin and Binance have additionally acknowledged that they plan to offer proof of reserves inside the subsequent few weeks. A number of different crypto exchanges have offered proof-of-reserves pages even earlier than the FTX story broke, together with Gate.io, Bitmex and Kraken.
