Indian crypto exchange CoinDCX launches its proof of reserves report to provide transparency to users in the wake of FTX collapse.
CoinDCX partnered with Nansen to publish the report, and now all on-chain and off-chain assets with a complete list of wallet addresses are open to verify for every user.
The Nansen dashboard provides information about CoinDCX’s net worth, token and protocol allocation, asset value, and overall profit and loss.
CoinDCX last week disclosed its Reserve to Liability (R2L) ratio for its top 10 assets. In order to keep customers confident in the company’s health and the security of their investments, the company intends to publish monthly updates regarding its R2L ratio.
CoinDCX co-founder and CEO Sumit Gupta stated the company has consistently kept its user liabilities to assets ratio higher than 1:1.
“CoinDCX has always been on the forefront when it comes to adopting best practices of risk management, transparency and consumer protection. With this, we want to instill complete trust in the users. We feel that access to transparency is not a privilege but a right of users,” stated Sumit Gupta.
Binance was the first exchange to release its proof of reserves reports following the collapse of FTX in order to gain community trust. Other popular exchanges, like OKX, Kucoin, Huobi, Bybit, etc., have released their reports since then.
Sumit Gupta added, “It is important to take learnings from the recent (FTX) incident. Once you have all that out in the open, it gives confidence to customers as well as to regulators.”
Gupta also noted CoinDCX is planning to publish a report from a reputable 3rd party audit firm to certify the exchange’s financial health, but unfortunately, Big 4 audit firms Deloitte, EY, KPMG, and PwC don’t work with crypto firms in India.
Last week, CoinDCX announced it will soon allow its customers to store their crypto in self-custody wallets, and the team is actively working on solving this problem, and now the company is ready to execute the next step.
