What is Proof-of-Reserves? Which Crypto Exchanges Offer It?
www.cryptovantage.com/news/what-is-proof-of-reserves-which-crypto-exchanges-offer-it/
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showing how much cryptocurrency an exchange holds doesn’t mean that much if this exchange doesn’t also provide a statement of its liabilities
Yes, it may be reassuring to hear that Binance holds over $67 billion in cryptocurrencies, but how much debt does it owe? What are its operating costs? Such questions remain completely opaque, so it’s not a given that Binance is actually solvent. And because Binance is a private company (like most other exchanges), it can continue to not disclose its liabilities.
Another big problem for exchanges is that, with all of them holding their reserves largely in cryptocurrencies, they’re subject to wild fluctuations in value.
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