- Bybit’s users will be able to independently check the exchange’s holdings.
- It has also promised to make public the whole contents of its Bitcoin and Ether wallets.
Bybit, another major cryptocurrency exchange, has joined the chorus of its peers calling for more openness in the wake of the FTX disaster. Its Merkle Tree-based proof-of-reserve technology was disclosed to the public on December 12. Through this new endeavor, Bybit’s users will be able to independently check the exchange’s holdings, as well as their own funds put there.
Users with assets in trading accounts and funding accounts, including cryptocurrency holdings in Bybit Earn products, may take advantage of the new service. Bybit wallet ownership can now be verified, ensuring a one-to-one ratio of assets owned.
Co-founder and current CEO of Bybit, Ben Zhou, stated:
“The cryptographic solution brings forth a crypto-native, trustless model of providing verifiable evidence of our on-chain holdings and liabilities…”
Gaining Investor’s Trust Top Priority
The notice also states that the exchange will improve withdrawals and implement additional risk management procedures. It has also promised to make public the whole contents of its Bitcoin and Ether wallets. On November 16th, a week after the FTX crisis started to unfold, it revealed the addresses of its reserve wallets.
Many of the top exchanges in the sector have come up with comparable transparent techniques as users shift their focus to protecting their cash and holding exchanges to account. When Binance revealed its Merkle Tree-based system two weeks after making its reserves public, it was the first of its kind to do so.
Nonetheless, warning signs were revealed in the exchange’s finances when it shared some of its otherwise internal data, including its business structure, BTC liabilities, and the strength of its internal controls.
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