Today, MEXC launched its Merkel tree Proof of Reserve system to allow users verify the reserve ratio of the cryptocurrency exchange. In a Tweet, the 19th largest cryptocurrency exchange by trading volume revealed that the platform will aid users to verify four tokens in its reserve. These token according to MEXC are USDT, USDC, BTC and ETH.
More so, the cryptocurrency exchange revealed that the system underwent a testing procedure for about 45 days. MEXC explained that the process of designing the PoR platform became completed early last month. Thereafter, the exchange subjected the platform to two rounds of internal tests. During the testing period, MEXC intended to release the first PoR data on March 10, 2023. With plans to release the data on the 10th day of every of month.
However, the firm made a U-turn to release its Merkle Tree PoR platform days before the intended day. The exchange explained that the growing concerns about its business practices compelled it to release the PoR system before the intended day. Further, MEXC emphasized that it’ll continue to priotize the safety of users’ fund.
Additionally, MEXC provided the address of its public wallet, encouraging users to compare the documented value of assets on the PoR system with what’s obtainable on the public wallet. The exchange went call on other firms in the industry to embrace healthy business practices. The exchange emphasized that it doesn’t use users’ funds to pursue other business activities in and outside the crypto space.
Notable side notes about MEXC
Henceforth, MEXC will update the data on the PoR platform every month to ensure transparency. Speaking about future updates, the exchange said it will add a third-party audit feature. This feature will as well come with a mechanism for verifying other tokens. MEXC established its confidence in the feature stating that it’ll help ensure transparency and security while maintaining a 1:1 reserve ratio of users’ funds.
Established in 2018, MEXC has about 6 million users across 200 countries around the globe, with its headquarters in Seychelles. In the past, the cryptocurrency exchange has obtained regulatory licenses in the U.S, Estonia, Canada, Switzerland and Australia.