Binance’ subsidiary Coinmarketcap launched a proof-of-reserves index to fight against funds mismanagement of the crypto platforms.
Coinmarketcap (CMC) is a popular crypto tracking website, which provides easy tracking of the price & all details about a crypto easily. First-ranked popular crypto platform Binance acquired CMC in March 2020 for $400 million.
On 22 November, Coinmarketcap announced that the platform added a “Proof-of-reserve” feature, to show transparent backend funds behind the crypto companies via the use of verifiable auditing practice.
NEW #CMC Feature: Exchange’s Proof of Reserves
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Proof of Reserves (PoR) provides transparency to #cryptocurrency reserves through a verifiable auditing practice.
<1/5> pic.twitter.com/HlNbUGzOYE
— CoinMarketCap (@CoinMarketCap) November 22, 2022
Through the “Proof-of-reserve” tracker, CMC will give every 5 minutes updated data that will contain the Total Assets, Public Wallet Address Ownership, Balance, Price & Value of Public Wallets corresponding to every project.
FTX Collapse & Outcomes
On 8 November FTX exchange started to face a significant outflow of funds because of the panic among the customers over FTT bulk sell, a native token of the FTX exchange. Finally, FTX filed for bankruptcy in a US district court.
Due to the collapse of the FTX crypto exchange, the majority of the crypto investors were feeling panic to go with any centralized crypto company.
Recently Vitalik Buterin, co-founder of the Ethereum blockchain, proposed an idea for the crypto exchanges & projects to introduce a protocol, to show the on-chain crypto assets reserves.
Binance CEO Changpeng Zhao confirmed that he discussed Vitalik’s proposal with his team and he confirmed that the Binance team will develop an open-source code, which will be available to use for other exchanges to show the Proof-of-reserves.
Vitalik's new ideas. Working on this.
Just don't read the title aloud around people (Vitalik wrote it).https://t.co/AtR6KiSx5B
— CZ
Binance (@cz_binance) November 19, 2022
These things are showing that the downfall of the FTX crypto exchange resulted in a better outcome for the crypto sector, where the majority of the crypto companies are trying to show their back-end operations with more transparency.
Read also: Fed president says FTX bankruptcy like situation will continuously occur
Coinmarketcap launches proof-of-reserves tracker
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