CoinMarketCap Launches New Financial Reserve Feature!
Since the bankruptcy and collapse of crypto exchange FTX, many in the crypto community have demanded for other exchanges and crypto companies to provide better transparency. Now, CoinMarketCap has launched a new feature to help in doing so!
Financial Reserves Feature
Following FTX’s fall, multiple crypto exchanges like Binance have been publishing what they refer to as their “proof of reserve”, essentially complaining data to show all their financial reserves to provide their investors with more transparency and clarity on where the companies’ funds are.
To help with this, crypto price-tracking website CoinMarketCap has helped in compiling all the current available financial reserves from crypto exchanges, making the data available to see when a user checks the information of a crypto exchange.
— CZ 🔶 Binance (@cz_binance) November 22, 2022
At the time of writing, Binance, KuCoin, BitFinex, and OKX are some of the exchanges who have already added their financial reserve information onto the platform.
Developing Crypto Exchanges
In the aftermath of FTX’s massive collapse, it became clear to many in the crypto community including the creators of crypto exchanges themselves that there needs to not only be more transparency to investors, but also a change in their system so that investors can feel ensured that their funds are safe.
Because of this, a few days ago co-founder of Ethereum Vitalik Buterin created a proposal to create a new exchange system to ensure the stability of crypto exchanges. One of his proposed methods include creating a system that does not allow crypto exchanges to withdraw a depositor’s funds without consent.
Since then, multiple crypto exchange CEO’s including Binance’s CZ and Coinbase’s Brian Armstrong have voiced their agreement with developing these ideas, with CZ claiming that his exchange is already “working on it.”