Huobi, the Seychelles-based crypto exchange, recently became the latest digital asset exchange platform to reveal the number as well as the value of its digital assets held in reserves. Huobi has said disclosing the assets held in reserves helps to boost users’ confidence in the exchange as well as to improve transparency.
Huobi’s ‘Conclusion Overview’
Seychelles-based cryptocurrency exchange Huobi became the latest digital asset exchange to attempt to calm users’ concerns when it unveiled its so-called “Proof of Reserve” on November 12. On hold, the crypto exchange held approximately 32,000 BTC, 274,000 ETH, and 820 million USDT stable coins, as well as 9.7 billion TRX tokens.
In addition to disclosing the U.S. dollar value of digital assets held — $3.5 billion — Huobi also shared a snapshot of the list of addresses where the funds are being kept. Huobi’s revelation of digital asset holdings came just two days after FTX, accused of misusing crypto clients’ funds, filed for bankruptcy.
In a statement, Huobi, which was acquired by the Abroad Capital buyout fund in October, suggested that such disclosure helps reassure concerned users. Prior to Huobi unveiling its Proof of Reserves, other crypto exchanges such as Binance, Crypto.com, Deribit, KuCoin and OXX have put their respective Proof-of-Reserves (PoRs) through Merkle trees and full audits. As noted in the report, when crypto exchanges display PoR, it enables users to track their token holdings and transactions.
Meanwhile, the crypto exchange said it would further boost user confidence by making the display of PORs a routine practice going forward.
“To further increase user trust and accelerate our efforts to improve transparency, we are working with a third party to conduct another Merkle Tree Proof of Reserve audit within 30 days,” the crypto exchange said in a statement. Have been.”
