Nic Carter dives into proof-of-reserves, ranks exchange attestations

Bitcoin advocate Nic Carter has released an in-depth analysis of centralized exchange proof-of-reserves and ranked the attestations provided by some of the most prominent crypto trading platforms in the space. 

Carter

While some received high marks in terms of PoR score, crypto exchange Binance’s PoR did not do well on the rankings. According to Carter, the exchange’s low PoR score is because the PoR is incomplete. The crypto analyst believes that despite Binance CEO Changpeng Zhao (CZ) highlighting the importance of PoRs after the FTX collapse, the executive “hasn’t yet risen to his own challenge.” He wrote:

“Binance’s first PoR doesn’t grant strong assurances. It only covers Bitcoin, which only represents 16.5% of their client assets.”

While the PoR allows individual users to verify that they are included in the liability set, Carter said that the PoR does not show the entire liability list. This makes it difficult for a third party to verify the procedure according to the analyst.