Friday, May 26, 2023
HomeCryptopotatoTop Crypto Data Platform CoinMarketCap Launches Proof of Reserve Tracker

Top Crypto Data Platform CoinMarketCap Launches Proof of Reserve Tracker

November 23, 2022, 3:22 PM AEST 4 months ago

Crypto News Writer

A new feature released by leading crypto price-tracking site CoinMarketCap reveals more data about crypto exchanges’ reserves — the assets that enable a company to cover potential withdrawals by customers.

NEW #CMC Feature: Exchange’s Proof of Reserves 🏦

Proof of Reserves (PoR) provides transparency to #cryptocurrency reserves through a verifiable auditing practice.

<1 5="">

With the contagion of FTX’s highly damaging collapse continuing to spread, and Proof-of-Reserves being touted as a needed failsafe against future incidents, the website’s move to give people information about crypto exchanges has been welcomed by many. 

According to CoinMarketCap, its new ‘Proof of Reserves’ feature “provides transparency to cryptocurrency reserves through a verifiable auditing practice.” The data seems to be drawn from audited proof of reserves information that the exchanges themselves have made public — with these sources aggregated by CoinMarketCap for the convenience of its visitors. For instance, it lists as a source this tweet from

While the Proof of Reserves audit preparation is underway, we are sharing our cold wallet addresses for some of the top assets on our platform.

This represents only a portion of our reserves: about 53,024 BTC, 391,564 ETH, and combined with other assets for a total of ~US$ 3.0b

“More and more cryptocurrency exchanges have begun revealing their proof-of-reserves in the wake of the recent industry disquiet, and we believe in the importance of giving CMC users all of the information possible about each exchange, project and token.”

By exploring the web pages dedicated to each exchange featured on CoinMarketCap, users can now view details including:

A true sense of a company’s solvency is typically derived from the difference between its total assets and its total liabilities. Obviously, CoinMarketCap doesn’t have access to every company’s full balance sheet, and this feature at least gives investors some indication of an exchange’s ability to meet its financial obligations. 

Safe-keeping crypto investor funds by licensing exchanges and custody arrangements are being considered by the Australian Government, which recently hinted it would prioritise legislation in 2023 in response to the FTX collapse.

The recently finalised Senate Select Committee report into digital asset regulation recommended establishing a market licensing regime for exchanges, and stressed: “The key requirements of a new DCE Market Licence category should include, at a minimum, requirements relating to capital adequacy, auditing and responsible person tests.” 

CEO of digital asset mining company Mawson Infrastructure Group, James Manning is quoted in the report airing his concerns about the current lack of compliance standards: “There’s no audit obligation. As you pointed out, there’s no capital adequacy obligation. There’s no one verifying this, yet some of these exchanges are holding billions of dollars of assets.”

Join in the conversation on this article's Twitter thread.

The content and views expressed in the articles are those of the original authors own and are not necessarily the views of Crypto News. We do actively check all our content for accuracy to help protect our readers. This article content and links to external third-parties is included for information and entertainment purposes. It is not financial advice. Please do your own research before participating.

4 months ago
by Jody McDonald

4 months ago
by Jody McDonald

5 months ago
by Jody McDonald

View all partners

1 day ago by Cointelegraph

1 day ago by The Sydney Morning Herald

23 hours ago by

on Twitter

on Telegram

on Google News

Crypto News provides you with the most relevant Bitcoin, cryptocurrency & blockchain news.

Are you a journalist or an editor? Join us: [email protected]

Disclaimer: By using this website, you agree to our Terms and Conditions and Privacy Policy. Crypto News Australia is a news service that is dedicated to upholding the highest journalistic standards and adheres to its Editorial Policy. Crypto News Australia are a subsidiary of Swyftx Pty Ltd, which operates a cryptocurrency exchange in Australia and New Zealand. Any affiliations or relationships are outlined in our Partners page or Affiliates page. Our website is purely informational and provides news about cryptocurrency & blockchain. The information on Crypto News Australia should not be taken as financial advice, investment advice or a personal recommendation. Buying and trading cryptocurrencies is a high-risk activity. Please do your own due diligence before making any investment decisions. We are not accountable, directly or indirectly, for any damage or loss incurred, alleged or otherwise, in connection to the use or reliance of any content you read on this or any affiliated website.


Most Popular

Recent Comments