OKX says it is "100% clean" in securing customer assets
The exchange said in a report that it has $7.5 billion in reserves in bitcoin, Ethereum and USDT
Cryptocurrency exchange OKX said it has "100% net" collateral for its customers' assets, releasing its third monthly Proof of Reserves (PoR). According to the report, the exchange has $7.5 billion in reserve collateral held in bitcoin, Ethereum and USDT. With daily trading volume of $1.1 billion, OKX ranks third in the world (Coingecko data).
Proof of Reserves is a crypto-asset report that ensures that users' assets are actually in the exchange's accounts. OKX uses Merkle's tree (hash tree) to prove this claim in two ways: users can find their balance in the tree and see that their assets are included in the exchange's total balance, and they can also compare OKX's total balance to the OKX wallet balance publicly available online.
According to the new report, OKX's current reserve ratios are 105% for bitcoin (101% a month ago), 105% for Ethereum (103% a month ago) and 101% for USDT (no change).
The report notes that analyst firm CryptoQuant, which tracks PoR across the industry, found that OKX's assets are "100% pure." Assets in the report are considered "clean" when a third-party analysis determines that they do not include the platform's native token and consist solely of "traditional" crypto assets with high market capitalizations, such as BTC, ETH and USDT, OKX explains.
In early January, CryptoQuant CEO Ki Jung Ju pointed out that the Huobi platform has the dirtiest reserves compared to, for example, Binance, as most of them are stored in the exchange's native tokens (HT), which are subject to high risks of price hikes.
While crypto exchanges have begun publishing Merkle tree reports on reserves since the FTX crash, the cryptocurrency community and regulators do not fully trust such data. SEC Chairman Gary Gensler believes the practice does not meet the disclosure requirements needed to protect investors.
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