Since 2022, the crypto industry It has seen incidents involving a security breach, Three Arrows Capital allegedly embezzling client funds and facing an FTX liquidity crisis that led to a liquidity crisis for misuse of user assets. until now Many retail and institutional investors are still unable to receive rebates from Three Arrows Capital and FTX. was highly appreciated when it was invented. And people used to say that it was a trusted machine that would allow data to be fully transparent. However, after more than 10 years since the advent of Bitcoin, the industry has been repeatedly accused of fraud and lack of transparency.
In light of the recent scandal surrounding the crypto world, CoinEx has been swift to come up with a plan to help users more conveniently understand the transparency of CoinEx assets, and launched a Proof of Reserve to create a safer environment. reassure all investors and promote the sustainable and healthy development of the industry. CoinEx’s Proof of Reserve currently covers BTC, ETH, CET, USDT, USDC and SHIB, in the future it will cover more.
What is Proof of Reserve?
Proof of Reserve is a method of verifying assets. Use unchanged technical measures to check whether the platform has enough network assets to back up the user’s account assets.
CoinEx uses Merkel Tree to prove that the exchange maintains a 100% reserve rate. This verification method requires three main verification steps:
1. CoinEx uses the Merkle Tree as a data structure to encrypt user assets and publish all assets of all users at the same time. All CoinEx users can check whether their account assets are included in the Merkle tree to verify their authenticity. Is the number correct?
2. CoinEx displays the total assets of all network wallet addresses and wallets held by exchanges, and users can verify ownership of CoinEx addresses through their respective tools.
3. By comparing the total assets of all users with the total assets of all network addresses on CoinEx, users can check CoinEx’s asset reserve rate.
When all online assets on CoinEx are greater than or equal to all user assets, CoinEx maintains a 100% reserve rate in such cases. All account balances are backed by real assets, and CoinEx will never misuse user assets.
Users can now check CoinEx’s proof of backup by clicking on “Proof of Backup” on the navigation bar at the bottom of the CoinEx website or “Proof of Backup” on the CoinEx app homepage. In the meantime, users can follow the step-by-step instructions in the Help Center to verify that CoinEx Own the address? and whether their assets are included in the Merkle Tree.
See CoinEx reserve proof: https://www.coinex.com/reserve-proof
How to verify ownership of a CoinEx wallet address:
https://www.coinex.com/reserve-proof/help/verify-address
How to check if a property is in the Merkle Tree：
https://www.coinex.com/reserve-proof/help/check-merkle
Keep user assets safe and build a crypto trust system.
As a believer in crypto technology For a long time, CoinEx has always been committed to protecting the interests of users with the best products and services. Growing with the industry and investors, CoinEx has always regarded securing assets as profitable. Since its inception in 2017, CoinEx has never been hit with a security breach. This zero accident record is maintained by an extremely stable system protected by comprehensive measures. At the same time, CoinEx promises to maintain a 100% reserve rate and fulfill its promise. For use on Exchange, user assets are not misused for any reason. And all withdrawal requests are processed instantly.
CoinEx Launches Proof of Reserve to Prevent Manipulation and increase trust in crypto With transparency and minimizing the security risks facing the industry, CoinEx will never disappoint users who have always trusted and supported the exchange in the future. We will continue to maintain a 100% reserve rate and take steps. and all strict security criteria With the goal of making crypto trading easier, CoinEx will protect the interests and assets of more investors. and build trust in crypto To enable the positive development of the industry and provide users with a safe, reliable and transparent investment environment.