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?
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?
I also noticed recently that coinmarketcap added the parameter "exchange reserve funds data available" on their list of exchanges after a few of the big exchanges like Binance, KuCoin and Bitfinex have published their reserve funds. So i can imagine that if a new person joins the crypto space and is looking for an exchange to buy it's tokens then it could definitely make the difference if a exchange has published their reserve funds. As you already said though i don't think that there is a way to make 100% sure though that those reserve funds are really owned completely by the exchagnes itself or if there are also some coins of their users contained.