Today is the time when cryptocurrencies are going through a highly unstable phase and the recent series of events has caused a steep fall in the levels of trust vested in centralized players.
However, to ensure that customers do not get repelled by the idea of cryptocurrencies, industry leaders are coming forward and taking the responsibility to make their operations as transparent as possible.
In light of these scenarios, CoinDCX, India’s leading crypto exchange released its Proof-of-Reserves report to the public, showcasing their holdings along with respective wallet addresses.
CoinGabbar is diving deeper into understanding the Proof-of-Reserves report released by CoinDCX and understanding how it can impact the users’ trust in the long run.
What is Proof-of-Reserves?
Proof-of-Reserves is a process under which independent third-party auditors go through the customer assets of a centralized exchange to ensure that the exchange has enough assets to liquidate all the holdings of their users. Proof-of-Reserves recently gained traction when a leading centralized exchange turned into dust overnight only because all of its assets were stored in its native token.
Proof-of-Reserves audits are done by third-party auditors to cut down the possibilities of any bias and they are provided with the cryptographic signatures of the users' assets to validate that the value of their total holding is more than the possibility of customer withdrawals.
Third-party Proof-of-Reserve audits would enable the centralized exchange to present its objective assessment of the levels of liquidity that they have in their wallets. These audits ensure compliance and the reputed certifications enable the users to trust the project as auditors have no interest in whitewashing shady organizations.
CoinDCX is one of Indias largest and safest cryptocurrency exchange platforms where users can buy, sell and trade over 200+ different types of cryptocurrencies.
CoinDCX is a Singapore-based company and has been active since 2018.
In India, the CoinDCX is located in Mumbai.
The CoinDCX exchange platform is available in both web applications as well as mobile applications.
-> For crypto trading, a wide range of cryptocurrencies is available.-> This exchange has sufficient liquidity across a vast number of trading pairs.-> The trading fees are low and the minimum amount for a trading amount is also low.-> Instantly buy and sell cryptos with ease.
-> CoinDCX accepts payment methods for the users like UPI and IMPS.-> This exchange is available for multiple platforms.
