Huobi Becomes Latest Crypto Exchange to Disclose Proof-of-Reserves – Exchanges Bitcoin News

Huobi, the Seychelles-based crypto exchange, recently became the latest digital asset exchange to reveal the number as well as the value of its digital assets held in reserves. Huobi said disclosing assets held in reserves helps build user confidence in the exchange as well as improve transparency.

“Non-exhaustive overview” of Huobi

Seychelles-based cryptocurrency exchange Huobi became the latest digital asset exchange to attempt to allay user concerns when it unveiled its so-called “proof of reserves” on November 12. As shown in the “non-exhaustive overview” of Huobi’s digital assets held, the crypto exchange had around 32,000 BTC, 274,000 ETH, and 820 million USDT stablecoins, as well as 9.7 billion TRX tokens.

Along with disclosing the US dollar value of the digital assets held – $3.5 billion – Huobi also shared a snapshot of the list of addresses where the funds are kept. Huobi’s disclosure of the digital assets came just two days after FTX, accused of misusing crypto client funds, filed for bankruptcy.

In a statement, Huobi, which was acquired by buyout fund About Capital in October, suggested such disclosure helps reassure worried users. Before Huobi unveiled its proof of reserves, other crypto exchanges like Binance, Crypto.com, Deribit, Kucoin, and Okx all gave their respective proof of reserves (POR) via the Merkle tree and comprehensive audits. As noted in the report, when crypto exchanges display PORs, it allows users to track their token holdings and transactions.

Meanwhile, the crypto exchange said it will further boost user confidence by making displaying PORs a routine practice in the future.

“To further build user confidence and accelerate our efforts to improve transparency, we are working to complete another Merkle Tree Proof of Reserves audit with a third party within 30 days,” the crypto exchange said in a statement. a statement.

Terence Zimwara is an award-winning journalist, author, and writer in Zimbabwe. He has written extensively on the economic issues of some African countries as well as how digital currencies can provide an escape route for Africans.