Blockchain News

Ripple vs. SEC: OKX Exchange’s Proof of Reserves Takes Center Stage

The Ripple versus SEC lawsuit has been the talk of the town, with the crypto and XRP community keeping a close eye on any potential catalysts that could influence XRP’s price. The July declaration by a judge that XRP isn’t a security per se has already sent ripples through the market, triggering massive price fluctuations in the subsequent month. This judgment paved the way for multiple exchanges to reintroduce the cryptocurrency onto their platforms.

A prominent player in the XRP trading scene is the OKX exchange. Recently, the exchange unveiled its proof of reserves across all its digital assets. The figures for XRP reserves on OKX are as follows:

  • User asset holdings on OKX: 173,284,313
  • OKX wallet assets: 178,401,336
  • Total assets on exchange: 178,401,336

OKX possesses an additional 3% of XRP in its exchange than user holdings. However, it’s worth noting that users’ third-party custodians safeguard some assets. Hence, those keen on scrutinizing these balances might want to approach a third party directly.

The Imperative of Proof of Reserves

In the wake of the FTX fiasco, concerns regarding proper audits of reserves and the utmost transparency in cryptocurrency exchanges have heightened within the crypto community. The Proof of Reserves (PoR) model has gained traction and heralded as a crypto accountability beacon.

At its core, PoR ensures that a crypto platform genuinely has 1:1 backing across all the crypto assets it maintains for its clientele. This system lets users confirm the exchange’s solvency and ascertain that the figures align with the company’s claims.

Typically, a third-party auditor undertakes the PoR, offering a snapshot of the company’s balances, including on-chain wallets, to showcase transparent evidence. This impartiality is pivotal, especially given that companies might project skewed statements about their reserves if left unchecked.

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