Exchanges are trying to do so-called proof of reserves to show that they have customers funds.
Remember folks, proof of reserves are meaningless. Exchanges borrow from one another to show the crypto. That's why you see "accidental" transfers of hundreds of millions of dollars.
Remember folks, proof of reserves are meaningless. Exchanges borrow from one another to show the crypto. That's why you see "accidental" transfers of hundreds of millions of dollars.
They can show you bitcoins on an address, but nothing stops them from signing a contract pledging those bitcoins as collateral for a loan, or borrowing those bitcoins from a third party and paying interest.
And you can't prove liabilities on the blockchain.
And you can't prove liabilities on the blockchain.
A legal contract can be signed on a piece of napkin paper.
Exchanges are trying to co-opt auditors into the game, introducing statements from the auditor of FTX.
You know that you’ve lost the plot when even Kraken calls bullshit. Maybe he’s just butthurt?
Instead of proof of reserves, exchanges should be encouraging users to use them as exchanges instead of like banks. You don’t buy a car to leave it parked at a dealer.
Mandatory withdrawals after buying or selling crypto. Let’s say seven days. No custody.
Never gonna happen.
Mandatory withdrawals after buying or selling crypto. Let’s say seven days. No custody.
Never gonna happen.
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