Popular market researcher and tracking firm, CoinmarketCap has launched a proof-of-reserve tracker for crypto exchanges. The firm confirmed the launching of the new feature in its Tuesday Twitter post. According to CoinmarketCap, the new feature allows users to monitor financial insights of crypto exchanges as it unfolds.
Further, CoinmarketCap says the PoR tracker is designed to audits functional cryptocurrency exchanges within the sphere. This, according to the tracking firm, helps to promote transparency on liquidity at a given moment. Meanwhile, it maintained that the tracker looks to provide details of the total assets of exchanges, and their affiliated public wallet addresses, along with the balances, current price and values of the wallets.
According to CoinmarketCap, the tracker has been automated to update data every 5 minutes. Further, it says the tool shows data of the market pairs listed on CDPs. Notably, the firm also highlighted numerous guidelines for users to observe in navigating the feature. First, it asked users to visit its website, navigate to exchanges and choose any of the exchange in which they intend to search about.
CoinmarketCap, in its announcement used Binance as an initial example in exploring the new tool. As shared, the crypto exchange possesses over $65 billion listed in its combined wallet addresses. Also, other exchanges with PoR information available include KuCoin, Bitfinex, OKX, Bybit, Crypto.com and Huobi.
Crypto community sees tracking tool by Coinmarketcap as a great transparency addition
Worthy of note that the new tool has received lots of commendations from the crypto community. Many of them, particularly those on Twitter described the new tool as a great transparency addition. Binance CEO and co-founder Changpeng “CZ” Zhao, retweeted the announcement from CoinMarketCap with a link on Binance’s page.
Recall that following the crisis rocking FTX, CZ called on all crypto exchanges to embrace transparency. Then, the CEO pledged to live by example by publishing the proof-of-reserves of Binance. A few days after, the exchange published its proof-of-assets, which included wallet addresses and activity. CZ then hinted that what is available now is only the first iteration of what will be available via Merkle Tree PoR in the near future.
Notably, other crypto firms emulated Binance, releasing their financial data and liquidity information. As of press time, Bybit, Bitfinex and a host of others have published their proof-of-reserves. However, Grayscale, a security investment product provider decided to withhold its on-chain proof-of-reserves, citing security reasons. But, with the new tracking tool from Coinmarketcap, users will get constant updates on the financial state of their respective exchanges.