DEFI(NE)

Heard on the Block: “proof of reserves”

Tuesday, November 15, 2022 by Robinhood Snacks |

📊 Like if your banker did a show-and-tell, but left half the presentation at home…

Crypto exchanges are in the spotlight after FTX’s bankruptcy. Now nine exchanges are rushing to reassure everyone that they've actually got customers' assets. Binance said it would issue "proof of reserves": cryptographic proof it holds the coins it claims. But proof of reserves has been criticized because it's only one part of an exchange's financial health. Another part: proof of liabilities (how much the exchange owes).