Binance CEO Changpeng Zhao has made the latest effort to give users peace of mind in the wake of the recent FTX crash, and major exchanges in the industry have responded with “big brother.”
Binance CEO Changpeng Zhao
In order to further strengthen user confidence, on November 8, a series of major crypto companies had to speak out to reassure the community with a statement of not contacting or related to FTX and FTT tokens.
And not long after, Binance CEO Changpeng Zhao also directly posted a status line on his personal page, calling on today’s popular exchanges to provide proof of customer deposits.
All crypto exchanges should do merkle-tree proof-of-reserves. Banks run on fractional reserves. Crypto exchanges should not.@Binance will start to do proof-of-reserves soon. Full transparency.
— CZ Binance (@cz_binance) November 8, 2022
This is considered as a solution that Binance offered to avoid a similar situation as FTX, which suddenly stopped processing withdrawals amid the current chaos, which has a great impact on the interests of users and the entire crypto industry.
Accordingly, OKX is the first exchange to announce its plan to publish an asset report soon (within 30 days). In addition, OKX concurs that this action is an important step towards establishing fundamental trust in the industry among users.
It's critical for all major crypto venues to publicly share their auditable merkle tree proof-of-reserves or POF. We plan to publish ours in the coming weeks (within 30 days). This is an important step to establish a baseline trust in the industry. More to come…
— OKX (@okx) November 8, 2022
Justin Sun also stated that he wants to follow the call of the CEO of Binance. Although both Huobi and Poloniex (both controlled by Justin Sun) have regularly released asset endorsement reports in the past, given the current situation, another new report is essential to enhance user trust.
I want to echo CZ's advice. @Poloniex and @HuobiGlobal both have done it before. Huobi actually just finished it about one month ago. But we would love to do a third one with CZ's proposal. Merkle-tree proof-of-reserves 100% is very important to our industry and transparency. https://t.co/v4e09RWxGx
— H.E. Justin Sun (@justinsuntron) November 9, 2022
In addition, Justin Sun decided to “rescue” users who were stuck and unable to withdraw tokens of the Tron ecosystem, including TRX, BTT, JST, SUN, and HT on FTX, through conducting compensation for these tokens with a 1:1 ratio from Huobi exchange and TRON DAO. Losing users can fill out the registration form to receive support from Tron.
Justin Sun
To this day, Coinbase and Kraken have published reports to prove that protecting user assets is always a top priority. And other exchanges are already planning to announce proof-of-reverse.
Exchanges such as Justin Sun/Huobi Bitget have said that they will publish their merkle tree reserve certificates to increase transparency. The number of exchanges that have said they will be announced or have been announced so far has reached five: Gate Binance OKX Huobi Bitget. https://t.co/kr8agLwCYy
— Wu Blockchain (@WuBlockchain) November 9, 2022
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