Binance CEO and Vitalik Buterin will help crypto exchanges to prove reserves

Earlier, in connection with the bankruptcy of FTX, Changpeng Zhao called on all trading platforms to publish data on their balance sheets

14.11.2022 - 16:00

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2 min

What’s new? The head of the cryptocurrency exchange Binance Changpeng Zhao held an AMA (Ask Me Anything) session on Twitter Spaces, where he announced a collaboration with Ethereum co-founder Vitalik Buterin. According to Zhao, Binance will act as a pilot project in the system of proof-of-reserves.

And we're live!Tune-in to our Twitter space as @cz_binance will be answering all of your questions 👇https://t.co/4t8fJqQR1e
— Binance (@binance) November 14, 2022

What is the essence of the collaboration? The collaboration with Buterin involves the launch of a new method of proof-of-reserves for trading platforms. Previously, in the wake of the collapse of the FTX crypto exchange, Zhao appealed to the management of other platforms to make their balance sheet data public to increase transparency and trust in the industry. The initiative was supported by OKX, Huobi, KuCoin, Gate, and Crypto.com.

Zhao said during the session that cryptocurrency will be a volatile asset in the near future and the effects of the FTX bankruptcy will be seen in the market for a long time. He also stressed that Binance has the highest liquidity, the exchange has no debts, does not trade on markets, and does not transfer assets for safekeeping to third parties.

Zhao previously advised crypto companies not to use their native tokens as collateral in the wake of the FTX crash, as well as not to take out loans and have a large reserve.

Also on November 14, Zhao announced the creation of a crypto industry recovery fund “to help projects who are otherwise strong, but in a liquidity crisis.” He invited other major companies to participate in the creation of the fund. At the AMA session, Zhao said that about 5 institutions have already contacted him to discuss the details of cooperation on this issue.

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