Indian cryptocurrency exchange WazirX has released its proof of reserves and with that revealed that 90% of its user’s assets are stored in Binance wallets.
Cryptocurrency exchange WazirX has released its proof of reserves and says that it is India’s largest exchange in terms of both volume and reserve funds. Following the chaos that ensued after the fall of bankrupt exchange FTX, most major digital-asset service providers in the industry began publicizing their reserve funds, with Binance taking the lead. As distrust within the industry began to siphon through the industry, many firms had to release their reserves in order to maintain consumer confidence. The latest to join this trend is the Indian cryptocurrency exchange WazirX. The exchange made its act of transparency public on January 11 and said:
We are not only India’s largest crypto exchange by volume but also India’s largest crypto exchange by reserves.
The exchange utilized CoinGabbar, a third-party crypto asset tracking forum, to make its proof of reserves public. Per the data, WazirX has about $285 million in total assets displayed in the Tether stablecoin. WazirX’s further indicated that 90% of its user assets are held in Binance-based wallets, and the remaining 10% is stored in both hot and cold storage wallets. WazirX said that Binance was its chosen wallet due to its “strict protocols and industry-leading technical measures” used to safeguard user funds on its platform.
Another revelation to come from the proof of reserves is that over 19% of the exchange’s holdings are in Shiba Inu, 9.37% in Ether, 8.28% in Bitcoin, and 8.18% in DogeCoin. The exchange also assured customers that its reserves-to-liabilities ratio was more than 1:1, meaning that it should not experience any liquidity issues should it undergo major customer withdrawals.
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Source: https://cryptodaily.co.uk/2023/01/wazirx-releases-proof-of-reserves-majority-lies-in-binance