In light of the FTX liquidity crunch and imminent acquisition by Binance, Binance CEO Changpeng “CZ” Zhao has assured his community that his network will provide full transparency on asset holdings.
On November 10, Binance published a new “Proof of Assets” page where all details of its on-chain activity are available for its hot and cold wallet addresses. This comes just two days after the initial tweet from Czechoslovakia on November 8 in which he pledged to create a Proof of Hold mechanism to ensure “full transparency” to the community.
Binance issued an official statement on the new page saying that it is the next step in its “commitment to transparency and strengthening trust in the ecosystem,” but also just a starting point.
The ultimate goal is to create a Merkle Tree proof of funds, which will be shared with the community in the following weeks, according to the exchange.
“Our goal is to allow users of our platform to be aware and make informed decisions in line with their financial goals.”
The ad also included a snapshot of hot and cold wallet addresses from November 10, 2022 at approximately 12:00 AM UTC.
Additionally, the announcement reiterated that the Safe Asset Fund for Users (SAFU) has crossed $1 billion. The initial statement came in a tweet from CZ on November 9 and was said to be made “in light of recent price volatility.”
Users on social media responded to the announced numbers, with Reddit users worried about not seeing Monero
Listed on the new Proof of Asset page but still available for purchase through the exchange.
Many users across platforms including Twitter and Reddit said it’s a good start but reliability tests are needed.
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While the market stumbles in response to the FTX – Binance incident, other crypto platforms have expressed support for proof-of-stake mechanisms for their respective communities.
In a November 10 tweet, Crypto.com CEO Chris Marsalek said he believes it should be necessary for crypto platforms to publicly share proof of reserves. Furthermore, Marsalek said that the platform will soon publish its audited proof of reserves.
In addition, both OKX and KuCoin issued statements on Twitter in which the two platforms also committed to publishing proof of reserves in the coming months.