A new tool in CoinMarketCap allows users to track proof-of-reserves of crypto exchanges, displaying all public addresses and their respective balances.
CoinMarketCap, one of the most-used crypto market research websites, has added a new tool that will further increase the utility of CMC.
The newly added tracker will serve as an audit of exchanges that provide proof-of-reserves. This way, users can see whether an exchange has liquidity. Also, users can now see all public addresses and their balances. That makes it a lot easier to track major movements in the exchange.
CoinMarketCap announced that the Proof-of-Reserves tracking feature is updated every five minutes. This way, they can maintain as much transparency as possible with the crypto community. Check the full announcement below:
So far, the exchanges that have Proof-of-Reserves available in CoinMarketCap are Binance, KuCoin, Bitfinex, OKX, ByBit, Crypto.com, and Huobi Global.
The need for Proof-of-Reserves emerged after the recent events regarding FTX. As suggested by Changpeng “CZ” Zhao himself, the CEO of Binance, transparency is a must for the crypto industry, now more than ever.
CZ was also one of the first proponents of a proof-of-reserves protocol for all exchanges due to recent events. He and many others “big players” condemn what SBF and FTX did.
Other exchanges are now urged to do the same. Besides the above-mentioned exchanges, other exchanges are now working on continuously sharing their proof-of-reserves to maintain the trust of their users.
Grayscale, however, did not do so on what appears to be for security reasons. Nonetheless, Coinbase Custody vouched for Grayscale that the latter is liquid and has no solvency issues.
Still, it is essential that all exchanges and crypto-related projects share their proof-of-reserves if cryptos are to be trusted and adopted in the long run.