Binance has expanded its Proof-of-Reserve (PoR) report to include 11 more tokens, bringing the overall amount of funds verifiable via the exchange’s PoR system to over $63 billion.
In a Tuesday blog post, the world’s largest crypto exchange revealed that it has added MASK, ENJ, WRX, GRT, CHR, CRV, 1INCH, CVP, HFT, SSV, and DOGE to its PoR system. The report now allows users to verify the amount of funds on the exchange across 24 different cryptocurrencies.
“With the addition of 11 assets to its PoR system, Binance, the world’s largest exchange by trading volume, now shows over 63B USD in reserves,” the exchange said in the announcement.
The unprecedented collapse of FTX, once the third-largest cryptocurrency exchange, stirred up a lot of concerns within the crypto industry over the reliability of centralized players. In a bid 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. However, some crypto experts were quick to find some holes in the audit.
More specifically, Kraken co-founder Jesse Powell noted that the figures essentially state Binance’s bitcoin is 97% collateralized. The revelation led to a surge in withdrawals as rumors about alleged problems at the platform drove users away.
In a bid to address this skepticism, Binance incorporated zk-SNARKs into its proof-of-reserves verification earlier this year, affirming 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 verify the financial health of a company.
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