OKX, one of the largest cryptocurrency exchanges in the market, shows that it is overcollateralized in a recent proof of reserve statement. The decision to release regular Proof of Reserves statements comes after the collapse of FTX in mid-2022. The information was released by CoinDesk a few hours ago.Â
OKX Exchange Shows is Over-Collateralized
According to the latest proof of reserves shared by OKX, they are 103% collateralized with multiple cryptocurrencies, including Bitcoin (BTC), Ether (ETH), and Tether (USDT), the three most valuable virtual currencies in the market. At the moment, the exchange has $12.5 billion in assets, making it possible for users to withdraw funds at any time without having to be under pressure.Â
OKX Chief Marketing Officer Haider Rafique said on that matter:
“Customers often express concerns in person about centralised exchanges, highlighting issues with security, solvency and downtimes, even if they don’t always voice these concerns digitally.”
Cryptocurrency exchanges have been affected by increased distrust from customers as several platforms such as QuadrigaCX or FTX didn’t take the necessary actions to keep customers’ funds safe at all times. Additionally, crypto trading platforms have been heavily questioned about the way in which they work and share information with clients.Â
Therefore, OKX decided to take action and increase customer satisfaction. Rafique explains that 84% of the exchange’s users believe that publishing Proof of Reserve information is important.Â
At the time of writing this article, Bitcoin is being traded at around $34,300 per coin and it has a market capitalization of $670 billion.Â
