🎉Crypto exchanges Binance and OKX lead in “Proof of Reserves” (PoR) practices

🎉Crypto exchanges Binance and OKX lead in “Proof of Reserves” (PoR) practices

➡️Analysts at CryptoQuant compared the reserve ratios of five major crypto exchanges and found that Binance ranks first in terms of transparency, consistently maintaining a coverage level well above 100% and publishing its PoR reports on a monthly basis.

➡️This ratio is calculated by dividing the net customer balances by the platform’s total holdings.

➡️OKX came in second by a narrow margin, also maintaining capital reserves above 100%. The exchange publishes its reports regularly and without delay.

➡️Bybit ranks third, with a reserve ratio ranging between 105% and 115%. The platform recently enhanced its transparency by switching from bimonthly to monthly reporting.

➡️Kraken is in fourth place, maintaining reserve levels above 100%. However, since November 22, 2022, it has released only four reports—considered insufficient by some industry transparency standards.

➡️Coinbase, despite its size and prominence in the sector, ranks last in this comparison due to its lack of public reserve disclosures.

➡️Context: Proof of Reserves (PoR) is a method used by crypto exchanges to prove that they hold enough digital assets to fully back customer deposits. The practice gained widespread attention following the collapses of FTX and Mt. Gox, which severely undermined investor confidence in the safety of centralized platforms. However, there is still no consensus within the crypto community on PoR standards; some argue that disclosing wallet addresses may introduce additional security risks.

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