MEXC Global’s Proof-of-Reverse report shows high reserve ratios for USDT, USDC, BTC and ETH coins.
On February 22, crypto exchange MEXC Global announced a 45-day Proof-of-Reserves (PoR) proof of stock, which shows the percentage of USDT reserves. USDC, BTC and ETH are 120.70%, 240.18%, 116.50% and 110.53% respectively through Merkle Tree technology.
We officially launch the Merkel tree Proof of Reserves (PoR) system after 45 days of testing 🔥
Users can now verify four tokens (USDT, USDC, BTC, and ETH) and check the Reserve Ratio of MEXC assets via the system.
Verify here ️ https://t.co/jMOykswNhc pic.twitter.com/alP15yI67T
— MEXC Global (@MEXC_Global) February 22, 2023
As of February 10, 2023, MEXC held 232.4 million USDT, 33 million USDC, 1,869 BTC and 12,472 ETH of user assets. Meanwhile, the total assets held in the MEXC wallet for the four cryptocurrencies are 280.6 million USDT, 79.4 million USDC, 2177.5 BTC and 13,785.6 ETH.
Users can compare the assets of MEXC’s on-chain wallet addresses and the total assets of MEXC users in Proof-of-Reverse. If MEXC’s on-chain assets are greater than or equal to the total assets of MEXC users, it indicates that MEXC has enough reserve assets.
PoR is considered a measure, representing the financial health of an exchange. The PoR movement emerged right after the world’s leading exchange FTX was involved in a scandal of bringing customers’ money to invest illegally. Some exchanges that have launched proof of reserve include OKX, Crypto.comHuobi, Kucoin…
On the other hand, many people, especially financial experts, are not very interested in this verification method. The SEC once warned users should not be too trusting of PoR. Proof-of-Reserves can show the number of assets on the blockchain, but not how much of it is pledged as collateral, or the total debt the exchange has. To know this requires closer access to the books and records of the business.
At a related development, the MEXC exchange was discovered by the community that PoR and the volume of derivatives contracts showed signs of “abnormally high” when placed on a par with other exchanges, raising suspicions that the exchange may be counterfeiting. data.
Relatively safe to say that certain exchanges dope their data.
MEXC and Bitget are the two most obvious examples of suspect open interest and volume compared to exchange reserves, but also, Bybit honestly from the bunch.
Do not trust all data from data aggregators, folks. pic.twitter.com/DBnOEuviZH
— Vetle Lunde (@VetleLunde) February 22, 2023