Binance, the world’s largest crypto exchange, has expanded its Proof-of-Reserve (PoR) report to include 11 more tokens, bringing the total amount of verifiable funds via the exchange’s PoR system to over $63 billion.
The new tokens added to the PoR system include MASK, ENJ, WRX, GRT, CHR, CRV, 1INCH, CVP, HFT, SSV, and DOGE. With this addition, users can now verify the amount of funds held by Binance across 24 different cryptocurrencies.
Binance’s PoR system is designed to provide transparency and reassurance to its users, ensuring that the exchange has enough reserves to back up its trading volume. This move comes in response to the recent collapse of FTX, which raised concerns over the reliability of centralized players within the crypto industry.
Binance was one of the first platforms to share its Proof of Reserves report, which initially only showed a list of the tokens it held, but it promised to provide more details in an upcoming full audit report. In December, Binance shared its PoR report audited by Mazars, which stated that Binance’s bitcoin reserves had a 101% collateralization ratio. However, some experts raised concerns over the audit’s accuracy, and rumors of problems at the platform led to a surge in withdrawals.
To address these concerns, Binance incorporated zk-SNARKs into its proof-of-reserves verification earlier this year, providing a zero-knowledge verification method that keeps sensitive information private and secure while still backing up funds held on the platform at a 1:1 ratio.
Other crypto platforms that have completed their Proof of Reserves audits include Kraken, Crypto.com, Bitmex, Coinfloor, Gate.io, HBTC, and most recently, India-based WazirX, among others.
Despite the benefits of Proof of Reserves, some industry veterans argue that it is not enough to fully verify the financial health of a company. This is because this practice does not reveal the overall balance sheet and liabilities of a platform, making it difficult for users to get a complete picture of a company’s finances.
With Binance expanding its PoR report to include 11 more tokens, it shows the exchange’s commitment to providing transparency and security to its users. The addition of these tokens to the PoR system ensures that users can verify the amount of funds held on the exchange across a wider range of cryptocurrencies, giving them more confidence in the platform’s financial stability.