OKX’s 12th proof-of-reserves report shows 11% MoM asset increase

abdelaziz Fathi

OKX, the cryptocurrency exchange currently ranked as the sixth-largest in terms of trading volume, has released its 12th monthly proof-of-reserves (PoR) report.

The report, unveiled on Tuesday, indicates that OKX’s wallets hold $12.5 billion in primary assets, ensuring the platform’s ability to handle customer withdrawals. This figure is up 11 percent from $11.20 billion reported for September.

This release marks a year of continuous monthly PoR reports from OKX. Throughout the year, the exchange has incorporated features such as zero-knowledge proofs and Merkle tree technology, and it has expanded the range of assets covered in its reports.

OKX has also been engaging with the cryptocurrency community through monthly Ask-Me-Anything (AMA) sessions. These sessions have featured top executives including President Hong Fang, CMO Haider Rafique, and Global Chief Commercial Officer Lennix Lai, and were moderated by crypto influencers like Nic Carter, Daniel Borovik, and David Gokhshtein.

The exchange’s PoR covers 22 digital assets. The report indicates that OKX has maintained a reserve ratio above 100% for 12 consecutive months across all these assets. Among the assets covered are BTC, ETH, USDT, USDC, XRP, DOGE, SOL, and OKB, among others.

Specifically, the reserve ratios for some major assets like ether (ETH) remained stable at 103%, while USDT and Bitcoin witnessed a slight increase to 103% from the previous 102%. Analysis from the firm Nansen indicates that BTC, ETH, and USDT constitute over 90% of the holdings tracked.

OKX Chief Marketing Officer Haider Rafique said: “This milestone represents twelve months of strong efforts to publish hundreds of thousands of blockchain addresses, implement zero-knowledge technology to allow trustless verification and consistently listen to feedback and improve the report. I’d like to take this opportunity to encourage you, whether you’re a user of OKX or not, to take a new look at our Proof of Reserves as we set the standard for a crypto industry that stands for trust and transparency, always.”

Proof of reserves has gained traction as an audit method among cryptocurrency exchanges, particularly after the collapse of FTX. This method serves to assure that the custodian, in this case OKX, is not misusing customer funds and possesses the assets it claims to hold on behalf of its users.

Despite these efforts, there has been criticism regarding the lack of information about liabilities and internal quality controls in such reports. This issue was recently highlighted in the context of Binance’s proof of reserves report prepared by Mazars.

OKX is allowing users to view and download the old and new reserve ratios, providing a window into the exchange’s financial health and the safety of user assets. The report features tools that enable users to view reserve ratios for new and historical data to self-verify assets held within its platform.

The exchange also upgraded the transparency of its system by making full liabilities, or total balance of user deposits, visible to the public. This allows anyone to download the full liability Merkle tree as opposed to the previous system, which showed a user’s own liabilities but obscured data from other users. To safeguard user privacy, OKX splits and shuffles account liabilities in the tree using a technical solution called ‘splitting leaf nodes.’

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