Replying to Former Kraken chief executive Jesse Powell’s tweet, Twitter crypto personality Fatmanterra says Kraken has always been a great example of what a crypto exchange should be.
“Jesse makes an excellent point here. Exchanges, take note!” the tweet reads. FatManTerra went on to say that “It would be fabulous if we could make proof of client balances the gold standard,” and that now that FTX is gone, he will be making Kraken the primary on-ramp venue.
Kraken has always been a great example of what an exchange should be. Now that FTX is gone, I will be making it my primary on-ramp venue.
— FatMan (@FatManTerra) November 22, 2022
Jesse makes an excellent point here. Exchanges, take note! It would be fabulous if we could make proof of client balances the gold standard. https://t.co/UdZPggbSsL
According to Jesse Powell’s tweet, the Proof of Reserves AUDIT requires cryptographic proof of client balances and wallet control.
He explained that the PoR audit must have three things, including the sum of client liabilities where the auditor must exclude negative balances, user-verifiable cryptographic proof that each account was included in the sum and also,signatures proving that the custodian has control of the wallets.
The demise of crypto exchanges such as FTX may have given birth to the phrase “Proof of Reserve,” the latest crypto jargon to the crypto vocabulary.
Proof of Reserve, or PoR, is a verifiable auditing procedure that contributes to the transparency of centralised cryptocurrency reserves. It informs users about the platform’s financial situation and whether it has enough funds to match customer deposits. PoR employs cryptographic proofs, checks the ownership of public wallet addresses, and recurring third-party audits to certify the fund reserves of a centralised platform.
Binance CEO Changpeng Zhao recently announced that the company would soon begin implementing proof-of-reserve.
Powell stated in a new interview on the Unchained Podcast that the current crypto laws within the United States are forcing investors out of the country.
Buying and selling sure tokens which the SEC would most likely name securities is just not allowed in the US, and there’s really no license to have the ability to try this in any way. It’s not only a matter of getting the proper license. There’s no license, and so the SEC would say, ‘Yeah, there’s simply no method to do that exercise, interval, within the US.
he added.
