When Huobi, a cryptocurrency exchange situated in the Seychelles, published its purported “proof of reserves” on Nov. 12, it became the most recent exchange of digital assets to make an effort to allay consumers’ concerns. According to Huobi’s “incomplete overview” of its digital asset holdings, the crypto exchange has 9.7 billion TRX tokens, around 32,000 BTC, 274,000 ETH, and 820 million USDT stablecoins.
Huobi revealed the $3.5 billion value of the digital assets held in U.S. dollars and released a list of the addresses where the money is housed. Just two days after FTX filed for bankruptcy on suspicion of misusing cryptocurrency clients’ funds, Huobi disclosed its holdings in digital assets.
Huobi, which was acquired by the About Capital buyout fund in October, stated that it believes that such disclosure helps to comfort users who may be concerned. Other cryptocurrency exchanges including Binance, Crypto.com, Deribit, Kucoin, and Okx all provided their respective proof-of-reserves (POR) via Merkle tree and complete audits before Huobi revealed its proof of reserves. As mentioned in the article, customers can watch their token holdings and transactions when crypto exchanges display PORs.
The cryptocurrency exchange declared that by making the display of PORs a standard procedure moving forward, it will further increase user confidence.
“To further enhance users’ confidence and accelerate our efforts in improving transparency, we are working to perform another Merkle Tree Proof of Reserves audit with a third party within 30 days,” the crypto exchange said in a statement.