Leading the way in making the ‘Proof of Reserve System’ mandatory to address user concerns caused by the FTX bankruptcy, Binance plans to add 11 new altcoins to its reserves. The list also includes popular coins such as DOGE, ENJ, and MASK.
Binance adds DOGE and these 10 coins to its reserves
The world’s largest cryptocurrency exchange by trading volume is expanding cryptocurrencies in its proof-of-reserve system (PoR). According to the March 7 announcement, Binance will now include the following altcoins in its proof-of-reserve assets:
- Network (MASK)
- Enjin Coin (ENJ)
- WazirX (WRX)
- The Graph (GRT)
- Chromia (CHR)
- Curve DAO (CRV)
- 1inch (1INCH)
- PowerPool (CVP)
- Hashflow (HFT)
- SSV Network (SSV)
- Dogecoin (DOGE)
https://twitter.com/binance/status/16330911385527246850
With the latest additions we have quoted as Kriptokoin.com, the number of cryptocurrencies in the Binance proof-of-reserve system (PoR) has reached 24. In the official announcement, the exchange assured that its reserves are supported at a ratio of 1:1:
Introduced in late 2022 as part of Binance’s broader effort to provide greater transparency to users, the proof-of-reserve system uses Merkle trees to collect on-chain data so users can rest easy knowing that their assets are held in our custody at a 1:1 ratio. .
What is proof of reserve and why is it important?
Proof of reserve has been on the agenda of the crypto market following the collapse of FTX, and investors are demanding transparency to learn how exchanges are holding their cryptocurrencies. PoR, Proof of reserves, refers to a method of verifying that exchanges or the crypto firm do indeed have 1:1 support for the cryptocurrencies it holds on behalf of its clients.
Firms often turn to a third-party organization to process the reserve. They publish the results with some caveats (explained below) to help investors understand the financial condition of a centralized exchange and whether they have enough funds to cover customer deposits.
As part of our Proof of Reserves (PoR) process, #Binance is working with a 3rd party auditor to provide proof of ownership.
You will likely see some large transfers between #Binance’s owned wallets throughout the day as a result of this.
Funds are SAFU.
— Binance (@binance) November 28, 2022
Some exchanges and crypto lending platforms, including Kraken, Nexo, BitMEX, and Gate.io, have moved to launch proofs of reserve after FTX’s bankruptcy. However, the events of November 2022 showed that more exchanges are trying to have their own proof of reserve changing. Among them was OKX, Crypto.com and ByBit, as well as leading exchange Binance, which has released a Merkle Tree-based system for Bitcoin and Ethereum.
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