Dubai Cryptocurrency Exchange Bybit Publishes Verified Proof-of-Reserves
After the FTX disaster, the cryptocurrency platform operator Bybit followed the industry’s lineup of exchanges advocating for more transparency. The company announced the release of a Merkle Tree-validated proof-of-reserve mechanism on December 12. The latest project enables customers to immediately check Bybit’s holdings and also their own assets put on the crypto exchange.
The tool is accessible to all customers with money in trading and financing accounts, which comprise cryptocurrency assets held in Bybit Earn solutions. Furthermore, the new functionality allows the validation of Bybit wallet possession, confirming that crypto assets are kept in a 1:1 ratio.
Ben Zhou, co-founder and CEO of Bybit, remarked on the use of Merkle Trees in the validation of liquidity: “The cryptographic approach introduces a crypto-native, trust-free approach for delivering verifiable proof of our on-chain assets and obligations…”
In accordance with the statement, the crypto exchange would also improve withdrawals and risk administration procedures. It has pledged to make public the whole of its Bitcoin and Ether wallets. It had disclosed the addresses of its reserve wallets on November 16, a week following the FTX crisis started to unfold. As consumers shift their focus to the security of their assets and the accountability of crypto currency exchanges, several of the industry’s top firms have adopted comparable transparency methods.
Binance was the initial exchange to publish its reserves and commitment for a Merkle Tree-powered solution, which it launched two weeks afterward. However, red flags were revealed in the cryptocurrency exchange’s finances, such as its business structure, BTC obligations, and internal quality assurance, after the publication of previous internal information.
Two further cryptocurrency exchanges, Huobi and Gate.io, were scrutinized after providing images of their reserves funded by borrowed monies. Grayscale, on the other hand, is unwilling to reveal anything owing to security concerns.
Jesse Powell, co-founder, and chief executive officer of Kraken, issued a statement stating that evidence of reserve measures is meaningless without a total of customer obligations.