As the proof-of-reserve trend in the crypto industry continues to gain traction, OKX has become the latest in a slew of firms to publish information about its reserves. The report shows that OKX’s reserve is worth $7.5 billion and does not include its native token.
The Third Among Others
The latest proof of reserves published by OKX on Thursday is the third report released by the exchange. Although, the current information is the first to give a complete breakdown of all the assets that made up OKX’s reserve.
According to reports, OKX’s reserve is overcollateralized by 105% BTC, 105% ETH, and 101% USDT. Meanwhile, the exchange published the same asset mix in response to CryptoQuant’s new metrics to measure if its reserves comprise “clean assets.”
Furthermore, CryptoQuant claims that it isn’t right for the reserves of exchanges to comprise majorly of its native tokens. However, the platform’s data disclosed that the exchange’s reserves are 100% clean.
Additionally, CryptoQuant’s data shows that aside from OKX, Binance’s reserve is 87% clean, Huobi with 60%, and Bitfinex’s reserve is 70% clean. Commenting on the proof of reserve, the exchange’s chief marketing officer, Haider Rafique, stated that he believes all players will learn a thing or two in the next six months.
Rafique noted that crypto exchanges would begin to test each other’s proof of reserves constructively to enhance industry transparency. In a recent interview, the OKX executive stated that players would learn from each other and hopefully see the merits of their intentions.
Moreover, the marketing chief disclosed that OKX intends to publish its reserves report each month. He added that efforts are underway to launch a bug bounty reward program to allow developers to identify bugs in its system if any.
Questioning the Use of Native Tokens
It is worth noting that the “cleanliness of reserves” is a crucial factor worth considering as a result of the relationship between the now-collapsed FTX and its sister trading firm, Alameda Research.
According to reports, a large portion of Alameda’s balance sheet comprises FTX’s native asset, FTT. In late December, a filing by the US Securities and Exchange Commission (SEC) alleges that Caroline Ellison, a former Alameda Research executive explained that FTT is an investment contract, which makes it a security.
However, Ellison did not contest the regulator’s claim about using FTT. Furthermore, the SEC in its complaint, stated that FTX planned to utilize the funds from the sale of FTT to promote and manage its business to elevate FTT as an investment tool with high yields.
Even as other exchanges launch their native tokens, experts see this as another problem because some may still follow the FTX’s way.
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