CoinMarketCap's proof-of-reserve tracker
The most prominent market researcher and tracker in the cryptocurrency industry, CoinMarketCap, recently made an announcement regarding the launch of a new feature on its platform. This new feature will provide users with the ability to obtain up-to-date financial insights on exchanges.
Proof of Reserves (PoR) is a tracker that examines active cryptocurrency exchanges in the market to guarantee that these exchanges are being honest about their liquidity levels at any given moment. These exchanges are audited to confirm that Proof of Reserves (PoR) is functioning properly.
The announcement states that the tracker provides information regarding the total assets held by the company as well as the public wallet addresses associated with the company, as well as the balances, current prices, and values of the wallets. In addition, the announcement states that the tracker provides information regarding the public wallet addresses associated with the company.
CoinMarketCap has said that the PoR trackers would update their data every five minutes going forward.
In addition to the exchanges that have already been listed, there are a few more, including KuCoin, Bitfinex, OKX, Bybit, Crypto.com, and Huobi, that also make PoR information accessible.
In order to spread the word, Changpeng "CZ" Zhao, CEO and co-founder of Binance, retweeted an announcement from CoinMarketCap and included a link to the company's website in the tweet.
Members of the cryptocurrency community have voiced their support for this feature on Twitter, referring to it as a "great transparency addition."
On November 10, it produced a proof-of-assets, which contained wallet addresses and activity. Wallet addresses and activity were provided. Wallet activity was included in the analysis as well.
A vast number of platforms operating in this market have begun publishing data on their financial reserves and liquidity in an attempt to promote transparency. This trend was started by Binance, which served as an example for the other platforms to follow.
Grayscale, on the other hand, is a firm that offers financial products connected to cryptocurrencies. It has made the decision to withhold its on-chain PoR owing to what it sees as security concerns about the network.