Many crypto exchanges have released their proof-of-reserves to reassure customers, but Crypto.com was briefly absent from this list. This exchange has long been one of the parties most concerned about. But now this company also shows that it owns all the assets it claims to own.
Official audit for Crypto.com
Last Friday disclosed Crypto.com the balance sheets of the assets it manages. The audit was done by the international accounting firm Mazars Group, which employs more than 44,000 people in more than 90 countries. With cryptographic techniques, this company has proven that on December 7 at 1 am had the assets it should have for customers.
https://t.co/vCNztABJoG releases Proof of Reserves audited results.
Mazars Group compared the assets held in on-chain addresses proven to be controlled by https://t.co/vCNztABJoG with customer balances through an auditor-overseen live query of a production database as of Dec 7. pic.twitter.com/sXgvIe4ZMV
— Crypto.com (@cryptocom) December 9, 2022
Of nine different cryptocurrencies, the exchange manages 101% of client funds or more. van USDT even has it 6% extra than what it has to hold for clients. Logically, it will keep more than these percentages, after all, the platform also allows you to buy even more.
Specifically, the accounting firm has holdings of bitcoin (BTC), ether (ETH), USD Coin (USDC), USDT, XRP, Dogecoin (DOGE), Shiba Inu (SHIB), Chainlink (LINK), and Decentraland (MANA) checked. Crypto.com lets you trade more coins than these nine, but these will represent a much smaller part of the balance sheet.
Having assets audited costs money. Perhaps that is why the audit is limited to nine tokens. It is also striking that the Cronos token (CRO) only represents 1.65% of the tokens in the wallets, according to on-chain data from Nansen.
Criticism of Proof-of-Reserves
It must be said that there is a lot of criticism of the principle of ‘Proof-of-Reserves’ that more and more exchanges are revealing. So far this is a snapshot. Moreover, the numbers mean little without information about the exchange’s debts. Blockchain technology may make it possible to demonstrate reserves in real time in the future, but for now we have to make do with this limited information.