Binance lags behind Coinbase, Kraken and Gate.io in proof of reserves initiative

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Blockchain
Binance lags behind Coinbase, Kraken and Gate.io in proof of reserves initiative

On November 8, Changpeng Zhao — the CEO of the world’s leading crypto exchange, Binance — suggested that cryptocurrency exchanges should provide proof of reserves. Still, his exchange ended up not being one of those that led by example regarding this initiative.

As of November 14, cryptocurrency exchanges Binance, Kraken, Coinbase, Gate.io, Crypto.com, Bitfinex, and Huobi have all provided proof of their reserves, according to Blockchain Center. Still — despite the initiative recently announced by Zhao — only Kraken, Coinbase, and Gate.io provided relevant audits proving their reserves.

Centralized cryptocurrency exchanges suffer from a significant loss of trust from the crypto community after the recent bankruptcy of major crypto exchange FTX — a platform perceived as one of the most reliable. Blockchain analytics firm Glassnode tweeted that following FTX’s collapse Bitcoin (BTC) holders started withdrawing Bitcoin from exchanges “at a historic rate” of $106,000 BTC per month.

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