Merkle Tree-verified evidence of reserves released by Bybit, which joins the trend
The Dubai-based exchange published its reserve wallet addresses shortly before the FTX fiasco started. Now, it has launched a verification system that allows users to track their holdings. News Collect this article as NFT. Bybit, a cryptocurrency exchange, joins the ranks of those pushing for transparency in the crypto industry after the FTX disaster. It announced on Dec. 12 that it had launched a Merkle Tree-based proof to reserve system. Users can now verify Bybit’s holdings and their personal assets by using the new transparency initiative. The feature is available to all users with funds in both trading accounts and funding accounts, which also includes crypto holdings in Bybit Earn products.Additionally the new feature enables verification of Bybit’s wallet ownership, that assets are held with a 1:1 ratio.Ben Zhou, the co-founder and CEO of Bybit commented on the usage of Merkle Trees in liquidity verification: “The cryptographic solution brings forth a crypto-native, trustless model of providing verifiable evidence of our on-chain holdings and liabilities…”According to the announcement, the exchange is also enhancing withdrawals and upping its risk management controls. It also promised to publish all content from its Bitcoin (BTC), and Ethereum (ETH) wallets. It also promised to publish all of its Bitcoin (BTC) and Ethereum (ETH) wallet content. This was just a week after the FTX scandal broke. Binance was the first exchange to make its reserves public and pledge for a Merkle Tree-based system. It also released its internal data on Nov. 16. Greyscale, however, says it is hesitant about releasing anything due to security concerns. Jesse Powell, co-founder and CEO at Kraken, released a statement stating that all these proofs of reserve efforts are meaningless without the sum of client liabilities.