• BitMEX and Kraken have scored highly in an assessment of proof-of-reserves attestations by major crypto exchanges.
• Binance scored relatively low for its ‚incomplete‘ PoR.
• Nic Carter sees the momentum as a good signal for cryptocurrencies, terming it „a genuine silver lining from the FTX debacle.“
At the end of 2022, two of the most popular crypto exchanges, BitMEX and Kraken, have scored highly in an assessment of proof-of-reserves attestations. The assessment, performed by one of the most widely respected Bitcoin advocates, Nic Carter, provides an in-depth look at the various metrics used to evaluate the reserves of leading crypto trading platforms.
Carter’s “The Status of Proof of Reserve as of Year End 2022” sheds light on the results of the assessment, which show that both BitMEX and Kraken scored highly in the PoR criteria. However, the world’s largest crypto platform, Binance, posted a relatively low score due to its “incomplete” PoR.
Carter believes that the momentum of crypto exchanges releasing their proof of reserves is a good sign for the industry. He sees it as a “genuine silver lining from the FTX debacle,” and believes that we may well emerge from this crisis with a major step forward in exchange credibility.
The proof-of-reserves assessment looked at various metrics, such as the accuracy of the exchange’s reported balances, whether it has disclosed its full balance sheet, and whether it has made its cold wallet addresses public. Both Kraken and BitMEX scored highly on these criteria, while Binance was found to have an incomplete PoR.
Carter notes that the extra layer of transparency provided by proof-of-reserves attestations is a major step forward in restoring trust in the crypto industry. “The release of meaningful proof-of-reserves attestations is a major step forward in restoring trust to the cryptocurrency industry,” he wrote.
In conclusion, the proof-of-reserves assessment by Nic Carter showed that BitMEX and Kraken scored highest amongst the major crypto exchanges. Although Binance scored relatively low, Carter believes the momentum of exchanges releasing PoRs is a good sign for the industry. He sees it as a “genuine silver lining from the FTX debacle” and believes that the extra layer of transparency provided by these attestations is a major step forward in restoring trust in the crypto industry.