Nic Carter, a proponent of bitcoin, has <a href="https://medium.com/@nic__carter/the-status-of-proof-of-reserve-as-of-year-end-2022-48120159377c" target="_blank" rel="nofollow noopener">evaluated</a> the attestations supplied by several of the most well-known cryptocurrency trading platforms along with a thorough review of centralized exchange <a href="https://www.cryptoknowmics.com/news/coindcx-launches-proof-of-reserves-with-legal-auditors-certificate">proof of reserves</a>.

https://twitter.com/nic__carter/status/1608564180927545345
<h2>Nic Carter Dives In Exchanges and Proof of Reserves</h2>
Carter presented a thorough analysis of the proof of reserves (PoR) from various exchanges. The <a href="https://www.cryptoknowmics.com/news/amber-group-acquires-300-million-via-fundraising">cryptocurrency</a> executive employed criteria including testimony to assets held and a declaration of liabilities, incorporation of a third-party auditor, establishing credibility by accepting a PoR for all assets, and commitment to a continuous process to identify which PoRs are of the highest quality.

Kraken and BitMEX were the top two <a href="https://www.cryptoknowmics.com/news/canadian-authorities-tighten-controls-on-crypto-trading-networks">cryptocurrency trading platforms</a>. Carter claims that Kraken, which used Armanino for its proof-of-reserves, provides customers with a high degree of confidence knowing that there are no unrecognized liabilities. Carter lauded the trading platform's dedication to conducting PoRs every six months.
<h2>BitMex Rejected Auditor Use</h2>
<a href="https://www.cryptoknowmics.com/news/ex-bitmex-ceo-alexander-hoeptner-sues-exchange-for-unfair-dismissal">BitMEX</a>, which also earned appreciation, on the other hand, rejected the use of an auditor in favor of a highly open format. In terms of assets, the exchange provided a list of all <a href="https://www.cryptoknowmics.com/news/btc-com-parent-bit-mining-hacked-3-million-in-assets-taken">BTC</a> amounts it currently possessed with evidence that the BitMEX multisig may be used to spend them. The company made the whole <a href="https://www.cryptoknowmics.com/news/what-is-a-merkle-tree">Merkle tree</a> of user balances available along with its obligations. Since the responsibility set can be verified by anybody, there are no problems with omitted or negative balances, according to Carter.
<h2>Binance Scored Badly in the Rankings</h2>
The PoR score of cryptocurrency exchange <a href="https://www.cryptoknowmics.com/news/binance-industry-map-gives-an-overview-of-the-crypto-ecosystem">Binance</a> scored poorly in the rankings. Despite several others receiving excellent grades, Carter asserted that the exchange's poor proof of reserves score is due to the PoR's deficiencies. Despite Binance <a href="https://www.cryptoknowmics.com/news/3commas-ceo-acknowledges-api-key-breach-following-cz-alert">CEO Changpeng Zhao (CZ)</a> underlining the significance of PoRs following the <a href="https://www.cryptoknowmics.com/news/regulators-in-bahamas-are-holding-3-5-billion-in-ftx-user-assets">FTX</a> crash, the researcher for <a href="https://www.cryptoknowmics.com/news/banking-head-of-us-senate-indicates-outlawing-cryptocurrencies">cryptocurrencies</a> thinks the executive had not yet risen to his challenge.

According to him, Binance's initial PoR doesn't offer firm guarantees. Only 16.5% of their customer assets, or Bitcoin, are covered by it.

Nic Carter Delves Further Into Rank Exchanges and Proof of Reserves

Nic Carter evaluated the attestations supplied by several crypto trading platforms and published a review of centralized exchange proof of reserves.

Gungun is an enthusiastic writer that likes to create content for various aspects of the blockchain and crypto industry. She carries out extensive research and provides readers with informative and high-quality material.

Nic Carter Delves Further Into Rank Exchanges and Proof of Reserves

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