OKX: "Don't trust, verify"

The cryptocurrency exchange connects its audit with CoinMarketCap and makes its reserves public.

Exchanges & Wallets November 24
News Mundocrypto

The crypto world is not characterized by blindly trusting intermediaries, but by verifying every shred of information that needs to be validated. Liquidity on cryptocurrency exchanges has been an unknown until now, and after episodes like FTX, the community has gone back to its roots: "don't trust, verify." Only 7 exchanges out of 245 have published their data and OKX is part of those that have committed to being transparent.

Trust has been eroded and data seems to be the only way to get it back, so exchanges have committed to carrying out the Proof of Reserve process. This process allows users to check the level of reserves of an exchange, in order to justify its solvency in the face of a possible bank run or other needs. Now, Seychelles-based centralized cryptocurrency exchange OKX is sharing its audit, just after officially publishing its reserves.

"Our on-chain wallet holdings are public, so you can always verify that users' funds are backed 1:1 by real assets. We also regularly publish Proof of Reserve audits, making it easy for you to verify your assets are safely held in our reserves", OKX.

Based on their audit data, the exchange has an average transaction volume of $848,794,630.89 per 24 hours, which would equal 51,191 bitcoins at the time of writing. Total assets in OKX amount to $6,036,141,558.40 and, based on the report, it ensures that they have 1:1 collateral for all client assets. The exchange's reserves are split between USDT, 48.43%; BTC, 24.87%; ETH, 20.10%; USDC, 5%; USDK, 0.47%, and 1.11% in other assets.

OKX is heeding the warning. The native stablecoin of the Seychelles exchange has a mere 0.47% exposure to its own collateral USDK, which means it takes transparency and the robustness of its reserves quite seriously.


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Exchanges & Wallets