CoinMarketCap launches proof-of-reserve tracker to improve crypto transparency

CoinMarketCap introduced a new feature for verifying the financial reserves of crypto exchanges. The proof-of-reserve tracker allows users to check the current liquidity of selected platforms and make sure their funds are safe.

CoinMakretCap (CMC) announced the rollout of a new feature for monitoring cryptocurrency exchanges' reserves. The proof-of-reserve tracker provides details on the financial resources of the platforms supporting transparency. The tool can be accessed from the "Exchanges" tab on the CMC website after clicking on the small icon next to an exchange's name. The data is updated every five minutes.

The details are presented on a dashboard displaying the type of token, its balance, price, and value. To the right of the dashboard, you can find the interactive token allocation chart – wallet addresses for specific tokens will appear in the dashboard after you click on the selected token on the chart. Here's the exemplary proof-of-reserve tracker for Binance.

Proof_of_reserves_Binance
Source: CoinMarketCap.com

CMC is sourcing data from DefilLama, Nansen, the exchanges' websites, and… Twitter, as some companies are still in progress with the proof-of-reserves audit and share the essential data on social media. Such is the case with Crypto.com, OKX, and Bybit. On the other hand, Bitfinex provided the relevant information through Github.

CMC introduces the proof-of-tracker feature to improve transparency in the crypto market, troubled by the FTX events and price slumps. With the auditing tool available on the CMC's website, crypto exchange platforms have a way of proving they're being honest about their current liquidity levels.

CoinMarketCap is owned by Binance, the world's largest digital exchange by volume. The company's CEO, Changpeng "CZ" Zhao called for transparency from exchanges following FTX's bankruptcy, suggesting that all crypto platforms "should do merkle-tree proof-of-reserves."