Digital asset services provider CryptoCom has released its audited proof of reserves (PoR) data showing a fully backed balance sheet. The PoR is part of an ongoing effort among centralized exchanges (CEXs) initiated by Binance CEO Changpeng Zhao (CZ) to increase transparency and trust in the industry after the collapse of FTX to ensure customers’ funds are safe.
User’s Assets Are Backed 1:1
Announcing the latest developments on Friday, CryptoCom CEO Kris Marszalek said the verification was conducted by Mazars Group, a global financial audit, tax, and advisory company.
Binance also employed the firm to verify its reserves, released last month on November 25, showing its Bitcoin (BTC) reserves were overcollateralized.
In an official statement, the company disclosed that its assets are fully backed 1:1 to all funds deposited on the platform, adding that the assets are readily accessible on the CryptoCom App and CryptoCom Exchange.
“Providing audited Proof of Reserves is an important step for the entire industry to increase transparency and begin the process of restoring trust. Crypto.com is fully committed to providing customers around the world a safe, secure, and compliant means of engaging with digital currencies,” said Marszalek.
According to the disclosure, the verification was conducted through advanced cryptographic procedures to confirm the availability and backing of its balance sheet.
The exchange noted that Mazars Group compared the assets held on on-chain addresses proven to be owned by the exchange against users’ balance through an “auditor-overseen live query of a production database as of December 7, 2022.”
The report shows that the company has a BTC portfolio with a reserve ratio of 102%, ETH 101%, USDC 102%, and USDT 106%, among others.
Not the First
Meanwhile, CryptoCom is one of the many companies to have released their PoR since the FTX debacle, which started last month. Binance first released its reserve, followed by Bitfinex, OKX, Huobi, Gate io, KuCoin, and Kraken.
To aid the CEXs mission to provide adequate data to improve transparency in the industry, prominent market researcher and tracker, CoinMarketCap (CMC) launched a new feature that offers users updated financial insight. The CMC’s PoR includes public wallet address ownership, balance, price, and value of public wallets.
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Source: https://coinfomania.com/cryptocom-releases-proof-of-reserves/