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Huobi Becomes Latest Crypto Exchange to Disclose Proof-of-Reserves – Bitcoin News Exchanges

Huobi Becomes Latest Crypto Exchange to Disclose Proof-of-Reserves – Bitcoin News Exchanges

Huobi, a Seychelles-based cryptocurrency exchange, recently became the latest digital asset exchange platform to disclose the amount as well as the value of its digital assets held in reserves. Huobi said that the disclosure of information about assets held in reserves helps to increase user confidence in the exchange, as well as increase transparency.

Huobi’s “Non-Exhaustive Review”

Seychelles-based cryptocurrency exchange Huobi was the latest digital asset exchange to try to allay user concerns when it unveiled a so-called “proof of reserve” on November 12. As shown in Huobi’s “non-exhaustive overview” of digital assets. The exchange had about 32,000 BTC, 274,000 ETH and 820 million USDT stablecoins, as well as 9.7 billion TRX tokens.

In addition to disclosing the $3.5 billion value of the digital assets, Huobi also shared a snapshot of the address list where the funds are stored. Huobi’s digital asset disclosure comes just two days after FTX, accused of misusing crypto client funds, filed for bankruptcy.

Huobi, which was acquired by buyout fund About Capital in October, said in a statement that the disclosure helps to reassure interested users. Prior to Huobi submitting Proof of Reserves, other crypto exchanges such as Binance, Crypto.com, Deribit, Kucoin, and Okx provided relevant Proof of Reserves (POR) via Merkle tree and conducted a full audit. As the report notes, when crypto exchanges display POR, it allows users to track their holdings of tokens and transactions.

Meanwhile, the cryptocurrency exchange said it will further boost user confidence by making POR display a common practice going forward.

“To further increase user trust and accelerate our transparency efforts, we are working to conduct another Merkle Tree Proof of Reserves audit with a third party within 30 days,” the cryptocurrency exchange said in a statement.

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Terence Zimvara

Terence Zimwara is a Zimbabwean journalist, author and writer. He has written extensively on the economic woes of some African countries and how digital currencies can provide Africans with a path to salvation.







Image credits: Shutterstock, Pixabay, Wiki Commons

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