Crypto.com has joined all crypto-exchanges that now have their Proof-of-Reserves, releasing the results.
Crypto.com and the results of its Proof-of-Reserves
Cryptocurrency exchange Crypto.com announced the release of its Proof-of-Reserves and published the results.
It is now easy for our existing users to verify that https://t.co/vCNztABJoG has a 1:1 reserve of all customer crypto assets deposited on its platform, and users can confirm the assets in their account are responsibly backed and accessible.
— Crypto.com (@cryptocom) December 9, 2022
The audit showed that Crypto.com holds 102% of Bitcoin (BTC), USD Coin (USDC), and Shiba Inu (SHIB) and Decentraland (MANA). In contrast, the Reserve Ratio is 101% for Ethereum (ETH), Ripple (XRP), Dogecoin (DOGE) and Link. Only Tether (USDT) is 106% held by the company.
As with Binance, the audit of Crypto.com was conducted by Mazars Group, a leading international audit, tax and consulting firm that employs more than 44,000 professionals in over 90 countries.
Advanced cryptographic procedures were used to conduct the PoR, which confirmed the availability and coverage of client balances on the crypto platform.
Crypto.com: users and confirmation that their funds are backed by the platform
Thanks to Proof-of-Reserves, users can now use the dedicated web page to verify whether or not their cryptocurrency funds deposited on Crypto.com are backed by the platform.
In this regard, Kris Marszalek, CEO of Crypto.com said:
“Providing audited Proof of Reserves is an important step for the entire industry to increase transparency and begin the process of restoring trust. Crypto.com is fully committed to providing customers around the world a safe, secure, and compliant means of engaging with digital currencies.”
The collapse of CRO and investor concerns
Right around the time of the FTX collapse, the entire crypto-market suffered price dumps, but Cronos (CRO), Crypto.com’s crypto, fell nearly 45% that week.
The fact is that Crypto.com is a crypto-exchange just like FTX, and investors apparently sold CRO out of fear that even this exchange would experience liquidity problems.
And indeed, that same week, the exchange’s daily volume had plummeted from last year’s highs of about $4 billion to about $284 million last October, while withdrawals continue to increase.
However, from that week to the present, CRO’s situation has not recovered. At the time of writing, CRO is worth $0.06 versus $0.12 in early November.
Even Binance is showing its certified Proof-of-Reserves with Bitcoin
Last week, the most popular of the crypto-exchanges, Binance, also released the result of its Certified Proof-of-Reserves, also conducted by the Mazars company.
Basically, as of 22 November, Binance held enough Bitcoin to cover all user balances on the exchange.
An additional confirmation from the exchange, following the launch of its dedicated PoR webpage two weeks ago to reassure its users.
Unlike Crypto.com, however, Binance has focused only on BTC for the time being and has not revealed how often it will publish its PoR audits conducted together with Mazars.
Mazars is rescuing the trust of crypto-exchanges
Another cryptocurrency exchange that has decided to use the Paris-based company, Mazars, to conduct its PoR verification is KuCoin.
As the People's Exchange, we place the safety and security of users' funds as our top priority.
And so, we are proud to announce that #KuCoin has partnered with Mazars, a leading international audit, tax and advisory firm to increase transparency!
— KUCOIN (@kucoincom) December 5, 2022
However, the results of the audit on the collateralization of KuCoin’s assets have not yet been published. They are probably still being processed and verified.