OKX Publishes 3rd Proof of Reserves Report, Shows it Holds None of its Native Token as Collateral
Crypto-exchange OKX has released its third monthly proof-of-reserves (PoR) report, confirming that all its reserves are held in bitcoin, ethereum and USDT. This also means that none are held in its native token OKB, with OKX claiming that it has the largest ‘clean’ asset reserves of any major exchange, equivalent to around $7.5 billion.
Along with previous reports, OKX latest release may go some way to calming fears of further contagion in the cryptocurrency industry, with the collapse of FTX in November having a knock-on effect on other platforms. However, with DCG-owned Genesis declaring bankruptcy yesterday, it's clear that the industry hasn't weathered the storm just yet, and that it may take more than monthly PoR attestations to restore investor confidence.
According to OKX latest PoR report, its reserves are actually over-collateralized. This means that it holds more bitcoin, ethereum and USDT in reserve than its customers have deposited with it.
The lack of OKB in OKX's reserves is significant insofar as a heavy reliance on FTT was one of the major causes of FTX's demise and ultimate collapse. By not using OKB in its reserves, OKX shows that it's not vulnerable to a situation where OKB's price falls dramatically, making its reserves all-but worthless.
According to the exchange, it has published more than 23,000 addresses for its Merkle Tree-based PoR program, with its OKX PoR protocol being open source and available to the public on Github (additional OKX holdings can be viewed on the OKX Nansen Dashboard).
For OKX CMO Haider Rafique, such transparency should provide customers with the assurance that OKX -- which is the sixth-biggest exchange in the world in terms of volume (according to CoinGecko) -- is one of the
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