BENGALURU: Crypto exchange CoinDCX on Thursday published its Proof of Reserves (PoR) in partnership with Nansen. The exchange has published on-chain balances and wallet addresses for many exchanges including Binance, OKX and Kucoin.
With this, the exchange’s on-chain and off-chain asset balances and complete list of wallet addresses are available for public viewing and verification. It shows that the exchange held over $125 million worth of assets by 9 pm on Thursday. CoinDCX plans to post monthly updates on its R2L (reserves to liability) ratio, as per the exchange. This will give customers complete confidence in health of the company’s business and the safety of investments.
With the FTX collapse, crypto exchanges in India are trying various ways to instill confidence among its users. Recently, CoinSwitch announced a third-party report by a consulting firm that verified its reserves. Sumit Gupta, co-founder and CEO, CoinDCX, said, “We are working on implementing cryptographic proof of liabilities in addition to certified audits of our financial health. With this, we want to instill trust in users. We feel access to transparency is not a privilege but a right of users.”
CoinDCX also announced it is working with audit firms to certify its financial health and will publish results shortly. As POR is just one side of the coin, COinDCX said it believes in equal visibility of liabilities, to ensure a healthy R2L ratio.
With over 15 million users, the exchange recently forayed into offering DeFi services through Okto wallet app. CoinDCX is backed by investors like Pantera, Steadview Capital, Kingsway, Polychain Capital, B Capital Group, Bain Capital Ventures, Cadenza and Coinbase Ventures, among others.