Transparency through proof of reserves is essential for restoring and maintaining trust in crypto exchanges, ensuring security through independent audits and verifiable reserves.
Opinion by: Lennix Lai, global chief commercial officer of OKX
More than three years after FTX’s collapse, the crypto industry must not forget that trust in our system depends on verifiable transparency. Arguably, that lesson matters more now than ever as we experience a period of volatility.
The idea behind proof of reserves (PoR) is simple yet powerful. Through transparent, onchain audits, exchanges can demonstrate that every customer balance is backed one-to-one by assets held in reserve. In the aftermath of FTX, PoR became a lifeline — a tangible way to prove that the industry was taking real steps to overcome its “Wild West” reputation.
