Kris Marszalek, CEO of Crypto.com, said that they’ve shared the belief that it “should be necessary for crypto platforms to publicly share proof of reserves” and Crypto.com will be publishing their audited proof of reserves.
According to the company CEO, this is “a critical moment for the entire industry,” given the recent and spectacular collapse of once-leading global crypto exchange FTX. The Crypto.com Chief Executive added that transparency is “more important than ever, and safety and security of users and funds remains the priority.” He points out that it “requires full and collective commitment.”
He further noted that “restoring trust in our category will take time, but it’s incumbent on us to send a strong message to the world that there are trustworthy crypto platforms.”
In other related news, the cryptocurrency exchange Gate.io has “made its Merkle Tree Proof of Reserves solution open-source.”
Announced on Twitter by Gate.io’s Founder and CEO, Dr. Lin Han, the exchange hopes other platforms can “use its open-source solution to increase transparency and industry health and welcomes other exchanges to receive consultancy and advisory support.”
In cooperation with U.S. firm Armanino LLP, Gate.io was reportedly “the first to conduct Proof of Reserves audits in this manner back in 2020.”
Recently, the pair “completed another audit.” As outlined in a report from Armanino LLP, Gate.io “holds an excess of BTC and ETH reserves at 108% and 104%, respectively.”
Gate.io claims it has “been vocal about its commitment to enhancing confidence in the market since announcing the new audit this year and hopes that other exchanges will follow suit.”
Gate.io’s audit solution “combines certified third-party assessments with cryptographic Merkle Trees, one of the core components of blockchain technology.”
It allows users “to openly and independently verify their assets are included in the audit and increases the transparency of users’ balances on exchanges.”
Following the announcement, it is “now open-source and publicly available for any exchange to implement.”
