Justin Sun urges Coinbase to adopt Proof-of-Reserves (PoR) for transparency, aligning with industry standards set by exchanges like Binance.
Coinbase's refusal to implement PoR raises concerns about its transparency, especially after denying Bitcoin IOU rumors with BlackRock.
Sun cites past crypto failures like FTX to argue that PoR is essential for self-regulation and building trust in the crypto industry.
Justin Sun, founder of the Tron blockchain, has raised concerns regarding Coinbase's stance on implementing Proof-of-Reserves (PoR). This follows the launch of Coinbase's new product, cbBTC. Sun has questioned why Coinbase refuses to use PoR, especially since major exchanges like Binance already have it in place. He argues that transparency is crucial in the crypto industry, and PoR can help achieve it.
https://twitter.com/justinsuntron/status/1836260557491704236 Justin Sun Questions Coinbase's Transparency
Justin Sun finds Coinbase's claim that PoR is not feasible hard to believe. Many experts in the crypto world, including Sun, see PoR as a simple and necessary step. Moreover, Coinbase recently denied rumors of issuing Bitcoin IOUs to BlackRock. This denial has only added to the concerns about Coinbase's level of transparency.
BlackRock’s Involvement and the Demand for Openness
Eric Balchunas noted that BlackRock's involvement in Coinbase's cbBTC project adds some credibility. However, Sun argues that this alone is not enough. Justin Sun has insisted that the crypto community expects Coinbase to be clear about its Bitcoin reserves.
Sun has suggested that Coinbase should reveal all wallet addresses linked to its reserves. This would show the community that Coinbase is being open and honest about its financial health.
Past Failures Highlight the Need for Proof-of-Reserves
Justin Sun has pointed to the collapse of FTX and the downfall of Signature Bank as warnings. He believes relying on audits and regulatory status alone is risky. According to Sun, PoR offers a more reliable way to prove that funds are safe and remain on-chain. He believes that if Coinbase adopts PoR, it would boost trust and show a commitment to self-regulation in the crypto industry.
Justin Sun’s push for Coinbase to adopt Proof-of-Reserves reflects a growing concern about transparency in the crypto world. While Coinbase claims that PoR is not feasible, Sun and others argue that it is crucial for building trust. This debate underscores the need for more openness and accountability in cryptocurrency exchanges.
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