HomeCrypto NewsMarketCryptoCom Releases Fully Audited Proof of Reserves, With XRP Reserve Ratios of 101% and SHIB 102%

CryptoCom Releases Fully Audited Proof of Reserves, With XRP Reserve Ratios of 101% and SHIB 102%

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The recent proof of reserves from Crypto.com is meant to assure clients that their assets on the exchange are backed at a 1:1 ratio.

Crypto.com, a leading Singapore-based global centralized exchange, has officially released its Proof of Reserves, fully audited by an independent external entity, to assure clients that assets held on the platform are backed at a 1:1 ratio. Crypto.com’s recent Proof of Reserves disclosure comes when investor assurance becomes necessary following the FTX collapse.

The Proof of Reserves from Crypto.com was disclosed today through a published article on its official website. According to the article, the platform assures customers that the Proof of Reserves has been thoroughly audited by Mazars Group – a top global audit and accountancy corporation with over 42,000 professionals across 90 countries.

Crypto.com disclosed the reserve ratio of nine of the largest assets held as customer balances, including Shiba Inu and XRP with respective reserve ratios of 102% and 101%. All assets are overcollateralized, contributing to further investor assurance. The full list of assets and their reserve ratios include:

  • Bitcoin (BTC), 102%
  • Ethereum (ETH), 101%
  • Circle USD (USDC), 102%
  • Tether USD (USDT), 106%
  • XRP (XRP), 101%
  • Dogecoin (DOGE), 101%
  • Shiba Inu (SHIB), 102% 
  • Chainlink (LINK), 101%
  • Decentraland (MANA), 101%.

 

The audit was carried out under the scope of the International Standard on Related Services (ISRS) 4400 provisions which involved utilizing efficient cryptographic measures to verify that the assets are available and backed as claimed by Crypto.com.

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The article further revealed that Mazars Group’s auditing exercise included the employment of appropriate means to compare the assets held by Crypto.com within its on-chain addresses and the total funds belonging to clients held by the exchange as customer balances. The means involved a query which was carried out on December 7, 00:00 (UTC).

“Providing audited Proof of Reserves is an important step for the entire industry to increase transparency and begin the process of restoring trust. Crypto.com is fully committed to providing customers around the world a safe, secure, and compliant means of engaging with digital currencies,” Crypto.com Chief Kris Marszalek remarked, speaking on the development.

The Need for Investor Assurance

The article says that Crypto.com’s recent proof of reserves disclosure is a move directed at setting proper standards in the areas of accountability and transparency. Customers can verify their funds on the exchange by visiting the link provided.

Following the FTX collapse, which was majorly triggered by the misappropriation of user funds, as circulating reports have suggested, investor confidence in centralized exchanges has waned, underlining a necessity to assure customers that their funds are backed 1:1 on any CEX.

Concerns of Crypto.com faking its proof of reserves reports had surfaced in the past, with CEO Marszalek coming up to debunk the claims. Last month, Crypto.com transferred a whopping 1.8 trillion SHIB to Binance worth over $16M, raising more questions. Mid-November, Marszalek came up to assure customers that the exchange would not implode as FTX did, noting that they’ve never used their native token CRO the way FTX handled FTT.

Meanwhile, on November 25, Binance released its Proof of Reserves, initially starting with BTC, with a promise to do the same for other assets “in the next couple of weeks.” Binance’s proof of reserves reveals that BTC held on the exchange is in a reserve ratio of 101%.

Mazars Group, which audited Crypto.com’s proof of reserves, confirmed on Wednesday that Binance’s reserves were indeed overcollateralized, at a ratio of 101%. Wallet addresses on BNB Chain, Binance Smart Chain, Bitcoin, and Ethereum networks were assessed by Mazars Group.

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Author

Albert Brown
Albert Brownhttps://thecryptobasic.com/
Albert Brown is a cryptocurrency investor and journalist who has been in the nascent space since 2017. His love and passion for technological innovations made him delve deeper into the world of blockchain and cryptocurrencies. As a journalist, Brown has written on several crypto-related topics that have been referenced by popular industry players like Tyler Winklevoss, Binance CZ, etc.

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