Another exchange that will verify crypto reserves: Bybit. Bybit has joined other crypto exchanges in allowing clients to verify their reserve holdings. Crypto exchanges have released their evidence of a safe form since FTX crashed in November. Bybit has launched a system that will allow its customers to verify the crypto assets stored on the crypto exchange, the company announced last week.
Bybit’s security system uses Merkle trees, a type of data structure that can be used for on-chain authentication. Bybit says that customers who have money on the platform can use the system to prove that the exchange holds 100% of their assets.
Merkle’s tree-based system allows customers to check the platform’s reservation rates, the announcement said. The reserve price helps to show whether the crypto exchange has enough assets to cover the balance of the users. Bybit’s security ratio is currently 1:1, based on Saturday’s announcement. This is the latest assurance by a crypto exchange operator after the collapse of FTX. By bit has previously released a wallet address that stores it. Platform resources can be viewed on this Nansen dashboard.
Bybit is also the latest to release a system for users to monitor their holdings when FTX crashes. Crypto exchanges such as Binance and Crypto.com have released their own proof of deposit statements. These reviews and transparency efforts also come amid widespread criticism from traders concerned about the financial health of other crypto exchanges.
These news shows are safe, however, led to new questions for some platforms. Crypto exchanges such as Gate.io and Huobi have come under scrutiny recently despite allegations that their audits showed cryptocurrencies as part of their security. Despite these efforts, some critics say it is not enough. They point out that these reports often paint an incomplete picture of the financial health of these crypto exchanges. Information about debt and savings is not included in these reports.