Sun 11.12.2022 ▪ 12:00 p.m. ▪
3
min read – from
Since the FTX collapse in November, the crypto community has been watching centralized exchanges more closely. So, after the Binance exchange, it’s up to Crypto.com to release proof of verified reserves. These show that the platform has enough crypto assets to secure its debt to its customers. In this way, the exchange allows users to ensure that their crypto is actually considered for verification.
On December 9th, Crypto.com posted a page on its website disclosing proof of the reserves. The audit was reportedly conducted on December 7th by Mazars group, an international tax and accounting firm. After reviewing the assets of the exchange, the firm decided to do it. In fact, the platform would hold 102% Bitcoin, 101% Ether and 102% USD in coins.
Additionally, the review report issued by Mazars Group includes other cryptos with reservations above 100%. These include, among others: shiba inus and Dogecoins just to name these two.
To Kris MarszalekCEO of Crypto.com, the goal of this maneuver is to show its customers that the exchange a good manager for their wealth. It’s also about build up trust Crypto users for withdrawals.
The exchange’s reporting of the exchange’s assets and liabilities is not sufficient, it is in Crypto.com’s interest to provide a method to check the status of its reserves. Users can thus connect to the application to check the number of assets available on the platform at the time of the audit.
Likewise, customers of Crypto.com Copy the Merkle hash Derivatives of the various balances. Once in possession, they can go to Mazars’ auditors page and get a detailed proof of the liabilities.
Finally thanks to the version of the program Open source Silver Sixpence Merkle Tree Generator, Mazars claims that his site is completely reliable and credible. In fact, this program implies that every programmer will notice when his page undergoes a change that gives wrong results. The latter only have to run the program in their own development environment.
Conclusion
To allay the fears that continue to cloud the world of cryptoassets, some players have taken to presenting evidence of reservations. This is the case with exchanges such as binance, OKX or even Crypto.com. The latter want to calm down about their net situation and their financial health.
Receive a summary of what’s new in the world of cryptocurrencies by subscribing to our new service daily and weekly so you don’t miss any of the essential Cointribune!
Cédrick Aimé, PhD student in finance law and experienced SEO web editor, is passionate about cryptocurrencies, trading, etc. Of course, thanks to his articles, he participates in the daily blockchain revolution for a better democratization of DeFi.