Crypto Hotshots 2022 🔥♨️

Twitter Instagram Facebook Facebook Linkedin Youtube Spotify Medium Reddit Telegram
Voice of Crypto
  • VOC Explained
  • News
  • Analysis
  • Bitcoin
  • Altcoin
  • Press Release
    • Sponsored
    • Global Crypto Events
  • Services
    • Content Marketing Services
    • Crypto Influencer Marketing
    • Advertise With Us
  • Know Us
    • About Us
    • VOC Team
    • VOC Vigilantes
    • Brands Who Trust Us
    • Contact Us
  • bitcoinBitcoin(BTC)$27,584.00
  • ethereumEthereum(ETH)$1,757.74
  • tetherTether(USDT)$1.01
  • binancecoinBNB(BNB)$325.42
  • usd-coinUSD Coin(USDC)$1.01
  • rippleXRP(XRP)$0.446509
  • cardanoCardano(ADA)$0.371349
  • dogecoinDogecoin(DOGE)$0.076704
  • staked-etherLido Staked Ether(STETH)$1,753.93
  • matic-networkPolygon(MATIC)$1.12
  • Events
  • Videos
  • Podcast
Voice of CryptoVoice of Crypto
Aa
  • VOC Explained
  • News
  • Analysis
  • Bitcoin
  • Altcoin
  • Press Release
  • Services
  • Know Us
Search
  • VOC Explained
  • News
  • Analysis
  • Bitcoin
  • Altcoin
  • Press Release
    • Sponsored
    • Global Crypto Events
  • Services
    • Content Marketing Services
    • Crypto Influencer Marketing
    • Advertise With Us
  • Know Us
    • About Us
    • VOC Team
    • VOC Vigilantes
    • Brands Who Trust Us
    • Contact Us
Follow US
Copyright © 2023 Voice of Crypto. All Rights Reserved
Voice of Crypto > News > CoinMarketCap Plans To Fight Another FTX Debacle, Here’s how
News

CoinMarketCap Plans To Fight Another FTX Debacle, Here’s how

Valentine Adegboyegun
Last updated: 2023/03/14 at 12:07 PM
Valentine Adegboyegun Published November 23, 2022 March 14, 2023
Share
CoinMarketCap Plans To Fight

Key Insights

  • The Proof of Reserve tool provides data on an exchange reserve, the balance, and the available assets’ value. 
  • CoinMarketCap’s PoR tracker will improve the exchange transparency
  • Several exchanges are integrating the tool in the aftermath of the FTX crisis.

 

Contents
Key InsightsHow Proof-of-Reserve Promotes Transparency?CoinMarketCap’s Proof-of-Reserve Feature

One of the foremost crypto price tracking websites, CoinMarketCap, recently introduced a Proof-of-Reserve feature. The feature is available for centralized crypto exchanges to improve transparency for crypto participants. 

According to the announcement, the feature is available for seven centralized crypto exchanges. The exchanges include Binance, KuCoin, Bitfinex, etc. 

It is worthy of note that Binance Capital Management owns CoinMarketCap. Binance is the largest digital exchange by volume, and the CEO, Changpeng Zhao, is championing the need for transparency. Furthermore, Binance CEO, formally called CZ, reiterates the need for transparency in response to the FTX debacle. 

How Proof-of-Reserve Promotes Transparency?

The FTX collapse and the series of shady deals have increased the call for transparency in the crypto ecosystem. On this note, industry players opine that Proof-of-Reserve should serve as the new benchmark. 

There are expectations that the PoR tool or feature will aid the development of transparent and open-source protocols.

The Proof-of-Reserve promotes transparency by disclosing the number of reserve assets an exchange has to cover potential customer withdrawals.

Furthermore, the PoR tool confirms that a cryptocurrency exchange or wallet has the reserves it claims and that the data are publicly available. 

Similarly, Proof-of-Reserve keeps wallets and exchanges transparent and honest because it updates the data at intervals. For instance, CoinMarketCap PoR updates the data every five minutes. 

Experts say there is no better time for all exchanges and wallets to integrate the PoR feature than now. This comes in the aftermath of the FTX collapse. 

Furthermore, they noted that if FTX had the Proof-of-Reserve tool, customers would have known the amount in its reserve instead of what they claimed to have. 

CoinMarketCap’s Proof-of-Reserve Feature

The new Proof-of-Reserve tool on the CoinMarketCap website will provide users with up-to-date financial details on exchanges. 

It is a tool that allows users to keep track of exchange reserves by displaying total assets and public wallet addresses. The new feature will collect data at intervals and display them to the users of CoinMarketCap.

Industry players and experts say the Proof-of-Reserve will improve scrutinization and transparency. It helps to check the liquidity of exchanges at any given time. 

Similarly, the new feature tracks and publicizes information. This information includes the company’s total assets, associated public wallet addresses, and wallet values. 

Shortly after the unveiling of the feature, the CEO of Binance, took to his Twitter to announce it. Changpeng Zhao tweeted that the platform has released a new exchange reserve dashboard. 

You Might Also Like

Assesing the Odds of a Bitcoin (BTC) Price Run to $30K

XRP Market Cap Smashes $20B As Ripple vs. SEC Case Stirs News

Dogecoin Whales Make Massive Moves – Where Is DOGE Headed?

3 Things About Crypto you Need to Know Before the FOMC meeting

SVB Collapse Stalls NFT Market Growth

TAGGED: Crypto Exchange
Share this Article
Facebook Twitter Email Copy Link Print
Previous Article VOC, Voice of Crypto, SOL Solana (SOL) Price Jumps 15%, Here’s What Propelled This Upsurge
Next Article VOC, Voice of Crypto, NFT Magic Eden Eyes Gaming, Expands Support for Polygon-based NFTs
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Binance

Follow US

Find US on Socials
Facebook Like
Twitter Follow
Instagram Follow
Youtube Subscribe

Subscribe to our Newsletter

Get Newest Articles Instantly!

Ledger
Popular News
Web3 Shorthand
Web3 Shorthand: A Glossary for Crypto Newbies
web3 event London VOC
Networkverse: NFT & Web3 & Metaverse – Open Mic & Networking
Quick-Tips-To-Avoiding-A-Fake-Crypto-Wallet
Quick Tips To Avoiding A Fake Crypto Wallet

Follow Us on Socials

We use social media to react to breaking news, update supporters and share information

Twitter Instagram Facebook Facebook Linkedin Youtube Spotify Medium Reddit Telegram
Voice of Crypto

Voice Of Crypto hits a beat with almost 15 million users, churning out the best news and content in the Web3, crypto and blockchain space

Subscribe to our newsletter

You can be the first to find out the latest news and tips about trading, markets...

  • Advertise With Us
  • About Us
  • Privacy Policy

Copyright © 2023 Voice of Crypto. All Rights Reserved

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?