In the post FTX collapse market, Proof of Reserves has become the industry standard in assuring investors of the centralized crypto trading safety.
Regular audits demonstrate that exchanges have enough reserves on hand to cover the value of the digital assets that their users possess. Proof of Reserves is essential to preserving security and confidence in a sector, and leading exchanges demonstrate their strive to maintain high security standards by regularly releasing reserves audits.
Cryptocurrency exchange Bitget has recently issued their Proof of Reserves report for April, revealing a total reserve ratio of 176%, with the ratio for BTC and ETH reaching 335% and 229% respectively.
Their latest update also unveils a significant increase in the user assets of USDT and ETH, as both figures grew as much as 51% and 46% since January 2024, showing a growing user confidence amidst the recent $BTC & $ETH spot ETFs approval in Hong Kong.
Bitget has over $2.7 billion in total reserves as of April 22, 2024, according to Coinmarketcap. To further improve customer safety and reduce risks, the exchange has also set up a safety Fund and releases monthly values.
"Bitget is unwavering in its commitment to transparency and financial stability. Our latest PoR update reinforces our dedication to safeguarding user assets and upholding the highest standards of accountability. With a total reserve ratio of 176%, Bitget continues to lead by example in the cryptocurrency exchange industry", cited Gracy Chen, the Managing Director of Bitget.
It's reasonable to state that, in light of not so recent and yet memorable events in the cryptocurrency space, you shouldn't use an exchange that hasn't released a proof of reserves report or made preparations to do so. A legitimate exchange must provide evidence that it is keeping users' funds under control and not abusing them, as was the case with negative instances like FTX.
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