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Huobi Becomes Latest Crypto Exchange To Disclose Proof-of-Reserves

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Huobi, the Seychelles-based crypto exchange, recently became the latest digital asset exchange platform to reveal the number as well as the value of its digital assets held in reserves. Huobi has said disclosing the assets held in reserves helps to boost users’ confidence in the exchange as well as to improve transparency.

Huobi’s ‘Inexhaustive Overview’

The Seychelles-based cryptocurrency exchange, Huobi, became the latest digital asset exchange to attempt to assuage users’ anxieties when it unveiled its so-called “proof of reserves” on Nov. 12. As shown in Huobi’s “inexhaustive overview” of digital assets held, the crypto exchange had about 32,000 BTC, 274,000 ETH, and 820 million USDT stablecoins, as well as 9.7 billion TRX tokens.

In addition to disclosing the U.S. dollar value of digital assets held — $3.5 billion — Huobi also shared a snapshot of the list of addresses where the funds are being kept. Huobi’s revelation of digital asset holdings came just two days after FTX, accused of misusing crypto clients’ funds, filed for bankruptcy.

In a statement, Huobi, which was acquired by the About Capital buyout fund in October, suggested that such disclosure helps to reassure concerned users. Before Huobi unveiled its proof of reserves, other crypto exchanges like Binance, Crypto.com, Deribit, Kucoin and Okx have all given their respective proof-of-reserves (POR) via Merkle tree and full audits. As noted in the report, when crypto exchanges display PORs, this enables users to track their token holdings and transactions.

Meanwhile, the crypto exchange said it would further boost user confidence by making the display of PORs a routine practice going forward.

“To further enhance users’ confidence and accelerate our efforts in improving transparency, we are working to perform another Merkle Tree Proof of Reserves audit with a third party within 30 days,” the crypto exchange said in a statement.

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