Ethereum

Celsius

Bitcoin

Billion

<ul class="list-ic vertical">
 <li>1 <a>Proof-of-Reserve plays a significant role in auditing the users’ funds held by a crypto exchange.&nbsp;</a></li>
 <li>2 <a>FTX’s failure has spooked investors and cousterms which resulted in a decline of the spot trading volume of CEX.&nbsp;</a></li>
 <li>3 <a>OKX’s Proof-of-reserve states that the crypto exchange is over-collateralized with $12.5 Billion in primary assets.</a></li>
</ul>
Proof-of-Reserve has played a major role in maintaining the reputation of crypto exchanges. Proof-of-Reserve is the process of verifying that the customer assets held by a cryptocurrency exchange or financial institution correspond to the number of assets the company holds in reserve on behalf of the customers.
Proof-of-Reserve audits of the crypto exchanges are conducted by an independent third-party firm which publishes its report. Mazars is a well-known auditing firm, it offers the services of tax, advisory and international tax audits in more than 90 countries.
After the FTX debacle, there was a sudden decline in the subscription of centralized crypto exchanges. Users were shifting towards decentralized exchanges. Quarterly PoR reports are one of the reaons behind this shift.
Some of the recent PoR reports of crypto exchanges excludes the Proof-of-Reserve report of OKX, one of the leading cryptocurrency exchanges in the market.
Major points of OKX’s Proof-of-Reserve states that the crypto exchange is over-collateralized with $12.5 Billion in primary assets backing user funds. Exchanges hold collateral mostly in <a href="https://www.thecoinrepublic.com/2023/10/27/bitpay-partnered-banxa-for-expansion-cex-dex-which-is-secure/" rel="noopener noreferrer nofollow">Bitcoin</a>, Ethereum and Tether (USDT).&nbsp;&nbsp;&nbsp;
Overall, Bitcoin holdings of OKX valued for $136,227, with a decline of 4.49% compared to the year earlier. However its ETH holdings surged over 3.5% and stood at 1,419,083 ETH.
<h2 class="wp-block-heading" id="strong-did-trading-volume-of-centralized-exchanges-drop-in-q3-2023-strong">Did Trading Volume of Centralized Exchanges Drop in Q3 2023?&nbsp;</h2>
On October 24, 2023, CoinGecko published the ‘2023 Q3 Crypto Industry Reports’ which states that total spot trading volume decreased in Q3 by 20% and total volume was $1.42 Trillion.
Majority of crypto market analysts believe that the decline in spot trading volume is largely because of FTX. Entire markets, including tokens, coins, both centralized and decentralized exchanges were affected by FTX. Following FTX’s bankruptcy, many others crypto companies packed up. Some of those entities that went defunct in its aftermath include BlockFi, Celsius Network, Voyager Digital and Three Arrows Capital and many others in the list.
<h4 class="wp-block-heading">Disclaimer</h4>
The views and opinions stated by the author or any people named in this article are for informational ideas only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.&nbsp;

Is Proof-of-Reserve Playing Significant Role in CEX Adoption?

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Thecoinrepublic.com

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