<a href="https://www.cryptoknowmics.com/news/cz-binance-shared-reasons-for-twitter-investment-and-support-for-musk">Changpeng "CZ" Zhao</a>, CEO of Binance, <a href="https://twitter.com/cz_binance/status/1590055819416330240?" target="_blank" rel="nofollow noopener">stated</a> that his exchange would eventually start a Proof-of-Reserves audit mechanism to validate its digital financial assets in the wake of the liquidity problem and the takeover of cryptocurrency exchange <a href="https://www.cryptoknowmics.com/news/ftx-rolling-out-v2-exchange-with-new-matching-engine-in-november">FTX</a>. In a tweet on November 8, Zhao promised to develop a Proof-of-Reserve system at Binance to give complete transparency through the Merkle Trees, a data model used more effectively and securely to encrypt blockchain data.

https://twitter.com/cz_binance/status/1590055819416330240?
<h2>Introduction of Proof-of-Reserve</h2>
The announcement that the CEO of Binance plans to introduce Proof-of-Reserves follows <a href="https://www.cryptoknowmics.com/news/binance-sets-emergency-insurance-plan-safu-to-1b-after-bnb-volatility">Binance's</a> November 8 agreement to acquire competitor cryptocurrency exchange FTX, whose CEO <a href="https://www.cryptoknowmics.com/news/sbf-no-longer-a-billionaire-after-14-6b-overnight-wipe-out">Sam Bankman-Fried</a> reportedly denied rumors that the company was in danger of going bankrupt.

The Twitter community supported the concept of increased Proof-of-Reserve audits almost unanimously, and prominent members of the <a href="https://www.cryptoknowmics.com/news/cftc-strikes-order-against-fraudulent-cryptocurrency-arbitrage-company">cryptocurrency</a> industry commented on Binance's action. In a tweet on November 8, <a href="https://www.cryptoknowmics.com/news/okx-exchange-launched-the-most-profitable-staking-of-shib">OKX</a>, a cryptocurrency exchange, stated that it would launch a Merkle tree-based Proof-of-Reserves audit mechanism, which they deemed to be essential in creating baseline confidence in the sector.

Binance Proof-of-Reserves Pledge Wins Support After FTX Crisis

Zhao promised to develop a Proof-of-Reserves system at Binance to give complete transparency through the Merkle Trees to acquire FTX.

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Binance Proof-of-Reserves Pledge Wins Support After FTX Crisis

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