Crypto exchange OKX has released its second proof-of-reserves on its website, only a month after releasing its first one.
Haider Rafique, the chief marketing officer of OKX, shared on Twitter that the crypto exchange is committed to sharing its reserve status every month.
A quick overview of our PoR and new features….
— Haider (@Haider) December 23, 2022
The announcement also included the rollout of a new feature that allows “users to view OKX reserve ratios for new and historical data,” self-verify on-chain assets, and download new and historical data, Rafique said.
OKX’s second proof-of-reserves ratios indicated that the exchange has 101% of Bitcoin (BTC), 103% of Ether (ETH), and 101% of Tether (USDT) needed to handle all withdrawals in these coins. The exchange’s previously released proof-of-reserve attestation from a month ago indicated that OKX had 102% of the BTC and ETH, as well as 101% of the USDT, needed to handle all withdrawals.
The exchange hopes releasing monthly proof-of-reserves reports will help promote transparency and re-establish trust between users and cryptocurrency exchanges following the sudden collapse of FTX.
Rafique shared: “Publishing [proof-of-reserve] results on a monthly basis strengthens our commitment to lead the industry when it comes to transparency and trust”
The announcement came shortly after a senior official from the United States Securities and Exchange Commission warned investors to be “very wary” about relying on a crypto company’s “proof-of-reserves.”
In a Dec. 22 interview with The Wall Street Journal, the SEC’s acting chief accountant Paul Munter shared that the results of these audits aren’t necessarily an indicator that the company is in a good financial position. According to him, proof-of-reserve reports by exchanges “lack” sufficient information for stakeholders to determine whether the company has enough assets to meet its liabilities.