DECRYPTION – After the collapse of the American exchange platform, it is urgent to reassure investors by all means, and to avoid other panic movements.
The unexpected fall of the great American exchange platform FTX, recorded in November, is only the replica of the examples of Mt.Gox, the exchange platform founded by the French Mark Karpelès, and the Canadian platform QuadrigaCX, respectively forfeited in 2014 and 2019, due to disastrous management and the use of fractional reserves. A method that consists of operating without holding all of the clients’ deposits in reserve and oh so risky in the context of the undeniably volatile crypto market. These repeated earthquakes threaten each time to be followed by many aftershocks on other companies in the sector. For the major cryptocurrency players, it is therefore essential and urgent to reassure investors by all means, and to avoid further panic. This brings the issue of proof of reservations back to the fore.
• What is proof of reserves?
Proof of reserves is an initiative that aims to strengthen the transparency of service providers…
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