GM crypto fam. Happy December!
I've seen that several exchanges are trying to increase client transparency after the FTX crash by disclosing their Proof of Reserves. Since there is no way to determine whether the exchange is not using client funds to cover hidden debt or anything, I personally don't buy any of this.
Since I'm genuinely unsure of whether I'm missing something, I figured I might get some helpful insights from more experienced people here.
Is PoR actually enough after all that has happened so far?
Source: https://app.getresponse.com/view.html?x=a62b&m=BVGySe&mc=9I&s=BtgXWnG&u=QcLhh&z=EShzGUd&
I've seen that several exchanges are trying to increase client transparency after the FTX crash by disclosing their Proof of Reserves. Since there is no way to determine whether the exchange is not using client funds to cover hidden debt or anything, I personally don't buy any of this.
Since I'm genuinely unsure of whether I'm missing something, I figured I might get some helpful insights from more experienced people here.
Is PoR actually enough after all that has happened so far?
Source: https://app.getresponse.com/view.html?x=a62b&m=BVGySe&mc=9I&s=BtgXWnG&u=QcLhh&z=EShzGUd&
As far as I know, only Binance has come out to announce their proof of reserve idea - in fact, I think they are the first to come up with this, so I don't know why you are saying 'several'.
I don't think users have any choice but to deal with exchanges even if they can not trust them enough, but this is just my opinion because despite what happened some people will still not find it necessary to store their funds in their personal wallet, users are as guilty as the exchange.
If people can use exchanges the way they should be used such an incident will not occur, exchanges are created to enable investors buy their desired crypto and store it in personal wallets not use the exchange as their personal wallets.