Using the same auditor as Binance, CryptoCom has provided reserve evidence for nine different cryptocurrencies.
In the wake of FTX’s demise, there has been a growing call for greater industry transparency, and CryptoCom is the latest exchange to provide proof of reserves.
According to the results of the audit, all Bitcoin and Ethereum balances, among other major cryptocurrencies, are more than 100% backed.
Mazars Group, an independent crypto-focused advisory firm, conducted the audit, as the exchange announced on Friday. Binance’s proof of reserves was conducted by the same firm last month.
“Advanced cryptographic procedures” were used by the auditing team to guarantee access to customer funds. Using a live query of a production database, which was overseen by an auditor, it compared the assets held on addresses controlled by CryptoCom to customer balances as of December 7.
According to the findings, the reserve ratio for BTC was 102%, while that for ETH was 101%. Meanwhile, leading stablecoins such as USDC and USDT had a 102% and 106% backing, respectively.
Coins like XRP, DOGE, SHIB, LINK, and MANA were also audited and found to have 100% of their reserves in circulation. But the market hasn’t disclosed its exact assets and liabilities.
In a statement, Kris Marszalek, CEO of Crypto.com, argued that providing audited Proof of Reserves was a crucial step for the entire industry in increasing transparency and beginning the process of restoring trust.
It is now possible for CryptoCom users to verify the safety and availability of their personal assets through the service’s mobile app and desktop website, just like Binance customers can do.
Proof of reserves is a method for verifying the security of users’ funds on exchanges by using public blockchain data. An external auditor’s analysis of a company’s liabilities is still necessary for a successful rollout of this system.
Kraken’s CEO Jesse Powell has made this point repeatedly this week after criticising what he saw as flaws in Binance’s proof of reserves.