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Crypto exchange CoinDCX releases proof of reserve for January-March 2023

As of March 24, 2023, CoinDCX has reserves of 199.4 million tether (USDT) against the liabilities in 198.5 million tether (USDT)

Cryptocurrency

Photo: Reuters

BS Web Team New Delhi

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Cryptocurrency company CoinDCX released its Proof of Reserve (PoR) report for the period between January and March 2023. The report, which shows the results of a third-party audit of a crypto company, is now being published by several crypto exchanges in a bid to boost investors' confidence. This has become more crucial after the collapse of FTX last year.

As of March 24, 2023, CoinDCX has reserves of 199.4 million tether (USDT) against the liabilities of 198.5 million tether (USDT). According to the company's statement, the reserves represent cryptocurrencies lying on partner exchanges such as Binance, Huobi and Bitmex, wallets and relevant blockchains, whereas user liability represents the crypto balances of individual users.

"Transparency is at the core of our business and we take great pride in making our exchange safe and secure. Leading up to that promise, we are proud to present our second quarterly Proof of Reserve report. This report has been published with the aim to simplify accessibility of the digital asset for the masses. We will continue to publish quarterly reports along with token information and will stay committed to introducing industry best practices towards the safety of the funds of customers and transparency," said Sumit Gupta, chief executive officer (CEO) and co-founder at CoinDCX.

Back in December, CoinDCX released its PoR for the first time. The data showed that the total value of the reserves at the crypto exchange CoinDCX stood at $157.9 million against the total liabilities of $155.2 million as of December 15.

The company further said that it intends to post its PoR every quarter and will soon launch a live dashboard to show investors its reserves and liabilities in real-time.

Last year, after the FTX fallout, Binance CEO Changpeng Zhao announced that the largest crypto exchange in the world would start Merkle-tree proof of reserve. He also asked other exchanges to follow suit.

"All crypto exchanges should do Merkle-tree proof-of-reserves. Banks run on fractional reserves. Crypto exchanges should not. @Binance will start to do proof-of-reserves soon. Full transparency", he tweeted.

Later in November, it became the first crypto company to release its PoR.

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First Published: Apr 28 2023 | 2:34 PM IST

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