In addition, Huobi and TRON will exchange tokens for affected FTX exchange customers

​OKX, Huobi, KuCoin, and Gate support Binance’s proof-of-reserves initiative

09.11.2022 - 09:00


4 min

What’s new? On November 8, Binance CEO Changpeng Zhao said that all cryptocurrency exchanges should publish regular reports on their reserves. According to him, Binance will start doing so in the near future. The proposal was supported by trading platforms such as OKX, KuCoin, Gate, and Huobi.

What did the companies say? Representatives of the OKX crypto exchange announced on Twitter that they will start publishing proof-of-reserves reports in the next 30 days. The company noted that this is an important step to establishing trust in the industry.

KuCoin CEO Johnny Lyu noted that protecting customer funds is the company’s top priority, and it will also provide a report on the status of reserves after a month. The platform will engage several authoritative auditing firms to compile it.

The Gate exchange published an announcement on its blog that its reserves in BTC and ETH exceeded the total amount of user assets. According to the audit conducted by the firm Armanino, the platform has 108% of total user BTC assets and 104% of customers’ ETH assets in reserves.

Gate’s blog post

On the part of the Huobi crypto exchange and TRON blockchain founder Justin Sun, who sits on its global advisory board, a statement was made about its willingness to provide a 1:1 exchange of TRX, BTT, JST, SUN, and HT tokens for affected FTX users if the platform is unable to do so itself. Sun also praised Zhao’s initiative to increase industry transparency, adding that Huobi already provides proof-of-reserves reports and plans to do so in the future.

Zhao suggested that exchanges publish proof-of-reserves after the 71% collapse of FTX’s token. On November 8, he announced that he had entered into a strategic deal with FTX, which involves a full acquisition of the crypto exchange. The deal is designed to address the lack of liquidity and the withdrawal of users’ funds from FTX.

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