{"id":72155,"date":"2022-12-30T16:52:49","date_gmt":"2022-12-30T14:52:49","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=72155"},"modified":"2025-09-08T13:14:25","modified_gmt":"2025-09-08T10:14:25","slug":"expert-ranks-bitcoin-exchanges-by-proof-of-reserves-quality","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/expert-ranks-bitcoin-exchanges-by-proof-of-reserves-quality\/","title":{"rendered":"Expert ranks Bitcoin exchanges by Proof-of-Reserves quality"},"content":{"rendered":"<p>Cryptocurrency exchanges Kraken and BitMEX headlined the <span data-descr=\"proof of reserves\" class=\"old_tooltip\">Proof-of-Reserves<\/span> (PoR) ranking, while Binance finished last due to incomplete coverage. The conclusions were reached by Nic Carter, a general partner at Castle Island Ventures.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">no one asked for it, but here it is anyway: my 2022 Proof of Reserve year in review <a href=\"https:\/\/t.co\/x6UjmHTrms\">https:\/\/t.co\/x6UjmHTrms<\/a><\/p>\n<p>\u2014 happy nic year (@nic__carter) <a href=\"https:\/\/twitter.com\/nic__carter\/status\/1608564180927545345?ref_src=twsrc%5Etfw\">December 29, 2022<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>In ranking the platforms, the analyst considered parameters such as cryptographic proof of assets held, users&#8217; access to information about the exchange&#8217;s obligations and the nature of disclosure, and the involvement of an external auditor. <\/p>\n<p>Additional criteria included the use of PoR for other digital assets besides Bitcoin, and the regularity of the procedure.<\/p>\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img decoding=\"async\" src=\"https:\/\/niccarter.info\/wp-content\/uploads\/PoR-score-1228.png\" alt=\"Expert ranks the quality of Proof-of-Reserv e on Bitcoin exchanges\"\/><figcaption>Data: Nic Carter.<\/figcaption><\/figure>\n<\/div>\n<p>According to Carter, Kraken provides clients with a &#8220;good level of confidence&#8221; in the absence of hidden liabilities. He also highly valued the platform&#8217;s commitment to conducting PoR on a semiannual basis.<\/p>\n<p>BitMEX topped the ranking despite the absence of an auditor. The expert placed it first thanks to a highly transparent model that showed both the holdings of bitcoin and the ability to spend coins via multisignature. Liabilities and user balances were presented as a full Merkle tree.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>In other words, there are no issues with omitted or negative balances. Anyone can verify the complete set of obligations in full<\/em>, \u2014 wrote Carter.<\/p>\n<\/blockquote>\n<p>A smaller score was awarded to Binance. He explained the decision by noting that the platform&#8217;s CEO Changpeng Zhao &#8220;has not yet risen to the challenge himself.&#8221;<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u00ab<\/em><a href=\"https:\/\/forklog.com\/en\/news\/binance-launches-proof-of-reserves-feature-for-bitcoin-holders\"><em>The first report<\/em><\/a><em> does not provide reliable guarantees. It covers only Bitcoin, which accounts for just 16.5% of their client assets [Binance]\u00bb<\/em>, \u2014 explained Carter.<\/p>\n<\/blockquote>\n<p>The specialist stressed that PoR does not disclose the full scope of obligations, which makes third-party verification difficult.<\/p>\n<p>As noted, Bitstamp US CEO Bobby Zagotta <a href=\"https:\/\/forklog.com\/en\/news\/bitstamp-us-chief-calls-proof-of-reserves-key-to-restoring-trust-in-exchanges\">admitted<\/a> that the Proof-of-Reserves procedure would restore retail investors&#8217; trust in trading platforms.<\/p>\n<p>Earlier, the <span data-descr=\"U.S. Securities and Exchange Commission\" class=\"old_tooltip\">SEC<\/span> <a href=\"https:\/\/forklog.com\/en\/news\/sec-urges-investors-not-to-trust-bitcoin-exchange-audits\">urged<\/a> investors not to trust the audits of bitcoin exchanges.<\/p>\n<p>Read ForkLog&#8217;s Bitcoin news on our <a href=\"\/\/telegram.me\/forklog\u201d\" target=\"\u201c_blank\u201d\" rel=\"\u201cnofollow\u201d noopener\">Telegram<\/a> \u2014 cryptocurrency news, prices and analysis.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Kraken and BitMEX headlined the Proof-of-Reserves (PoR) ranking, while Binance finished last due to incomplete coverage. The conclusions were reached by Nic Carter, a general partner at Castle Island Ventures.<\/p>\n","protected":false},"author":1,"featured_media":72156,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[967,1166,1138],"class_list":["post-72155","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-audit","tag-centralized-exchanges-cex","tag-opinions"],"aioseo_notices":[],"amp_enabled":true,"views":"23","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/72155","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=72155"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/72155\/revisions"}],"predecessor-version":[{"id":72157,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/72155\/revisions\/72157"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/72156"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=72155"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=72155"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=72155"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}