Binance has widened its Proof-of-Reserve (PoR) system to incorporate 11 extra tokens, bringing the total amount of funds verifiable via the exchange’s PoR system to over $63 billion.
In a recent blog post, the world’s biggest crypto exchange announced that it had added MASK, ENJ, WRX, GRT, CHR, CRV, 1INCH, CVP, HFT, SSV, and DOGE to its PoR system. The report now permits users to check the amount of funds on the exchange across 24 different cryptocurrencies.
“With the inclusion of 11 assets to its PoR system, Binance, the world’s largest exchange by trading volume, now presents over 63B USD in reserves,” the exchange said in the announcement.
The unprecedented collapse of FTX, once the third-largest cryptocurrency exchange, sparked off a lot of worries within the crypto industry over the dependability of centralized players. To address this skepticism, crypto executives started to share proof of reserves.
Binance was among the very first platforms to share its Proof of Reserves report. Initially, the platform shared a list of how many tokens it has but noted that it was “not a complete set of data” and that further details will be shared in an upcoming full audit report.
Later in December, Binance shared its PoR report audited by Mazars, which claimed that Binance’s bitcoin reserves have a 101% collateralization ratio. Nevertheless, some crypto experts were fast to find some holes in the audit.
Specifically, Kraken co-founder Jesse Powell noted that the figures essentially state Binance’s bitcoin is 97% collateralized. The revelation triggered a surge in withdrawals as rumors about supposed issues at the platform drove users away.
In an effort to combat this skepticism, Binance incorporated zk-SNARKs into its proof-of-reserves verification earlier this year, verifying that funds held on the platform are backed 1:1 while preserving the privacy of sensitive user data.
“Continuing the efforts in providing transparency on user funds, Binance is excited to introduce zk-SNARKs, a zero-knowledge verification method that keeps sensitive information private and more secure, to its Proof of Reserves (PoR) Verification System,” it said at the time.
Aside from Binance, 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.
It is worth noting that some industry veterans have argued that Proof of Reserves alone is not enough. That is because this practice does not reveal the overall balance sheet and the liabilities of a platform, which makes it hard for users to thoroughly check the financial health of a company.
