The OKX crypto-exchange has published its Proof-of-Reserve for the month of August, revealing it has a $10.4 billion balance. OKX’s reserve ratio for Bitcoin is 102%.
Summary
OKX: the crypto-exchange publishes its tenth $10.4bn monthly PoR
OKX has published its tenth Proof-of-Reserve report for the month of August 2023, revealing it has a $10.4 billion balance.
In essence, the crypto-exchange appears to be maintaining coverage of 22 digital assets, with reserve ratios exceeding 100%.
Indeed, in the statement, OKX specifies that the reserve ratio for Bitcoin (BTC) and Ethereum (ETH) is 102% each and for Tether (USDT) as high as 103%. Â
The other crypto assets included in OKX’s PoR are USDC, XRP, DOGE, SOL, OKB, APT, DASH, DOT, ELF, EOS, ETC, FIL, LINK, LTC, OKT, PEOPLE, TON, TRX and UNI.
This August was the tenth consecutive month that OKX had coverage for all 22 crypto assets.
OKX: the PoR of the crypto-exchange and the two Twitter polls
To commemorate its tenth consecutive PoR, OKX launched two polls on Twitter, with the aim of gauging the online community’s sentiment about the importance of PoR and transparency.
The first poll showed that 84% of respondents say monthly PoR reports are ‘somewhat important’ or ‘very important’.
The result of the second, on the other hand, states that 88% say that transparency is ‘somewhat important’ or ‘very important’ when choosing which cryptocurrency platform to trust.
Basically, this survey sought to engage the crypto-community to understand their views on the PoR issue, which since the FTX collapse in November 2022, has become almost of paramount importance to CEX.
In this regard, Lennix Lai, Chief Commercial Officer of OKX Global, said:
“OKX’s ten consecutive monthly PoR snapshots have coincided with a 38% increase in assets under management on OKX, showing that our keen focus on transparency is resonating with users. We asked our community how important PoR and transparency from exchanges are to them, and the results were as expected – users continue to call for monthly PoR and greater transparency. At OKX we take user feedback to heart and will continue to invest in future tools for security and transparency in order to continue earning user trust.”
Chainlink’s dubious PoR
Last June 2023, a report questioned the transparency of Chainlink PoR, i.e. the Proof-of-Reserve offered by the Chainlink crypto infrastructure to projects such as TrueUSD and Paxos.Â
In practice, the difficulty lies in being able to prove the transparency of PoR by wanting to integrate centralised data into decentralised protocols.
For instance, in the case of Chainlink PoR for PAXG, the gold-pegged stablecoin of Paxos, there is a confusing promise made to users.
Basically, Chainlink’s oracles allow them to quickly verify on the chain that PAXG tokens are fully backed by gold bullion, but held off-chain in the custody of Paxos.
Not only that, of the 16 third-party node operators reporting PAXG gold reserves, each of them obtains data from Paxos itself.
