As a secure and stable global crypto exchange, CoinEx has always prioritized protecting user assets to build trust and transparency in the crypto industry. Given several crypto crises and scandals in 2022 involving breaches and misused assets resulting in multiple closed exchanges, today’s crypto industry is accused of frequent fraud and a lack of transparency. To tackle this problem and uphold security as a core value, CoinEx launched Proof of Reserve in 2022 to demonstrate its commitment to user asset verification. This provides transparent verification of platform assets.
CoinEx has now updated its Proof of Reserve data on August 24, 2023 (UTC) to reinforce trust and transparency surrounding user assets. The details are as follows:
Latest audit data:
Asset snapshot time: 08:00 Aug 21, 2023 (UTC)
Proof of Reserve and Merkle Tree Method
Proof of Reserve audits assets through immutable technical measures, verifying whether a platform maintains sufficient on-chain assets to back user balances. CoinEx leverages the Merkle Tree structure to prove its 100% reserve rate. This methodology requires three steps:
1. CoinEx encrypts user assets in a Merkle Tree, publishing the aggregate total while allowing users to verify their balances. Every CoinEx user can check whether his or her account assets are included in the Merkle tree to verify the authenticity of the figures;
2. CoinEx displays the total assets of all on-chain wallet addresses and wallets held by the exchange, and users can verify CoinEx’s ownership of the addresses through the relevant tools;
3. By comparing total user balances with CoinEx's total on-chain assets, users can verify the platform's reserve rate.
When CoinEx's total on-chain assets equal or exceed total users’ balances, it proves a 100% reserve rate. In this case, all account funds are fully backed with real assets, confirming CoinEx does not misuse user funds.
As a long-term crypto believer, CoinEx makes user asset security an utmost priority alongside providing excellent products and services. The exchange promises and maintains 100% reserves, never misusing funds or limiting withdrawals. This unbroken security record stems from CoinEx's core philosophy of upholding asset protection as essential to crypto's potential.
Building Trust With Users and Crypto Industry For a Better Future
From an industry perspective, by adopting Proof of Reserve in 2022, CoinEx boosts transparency to mitigate crypto industry risks and build user trust among the crypto communities. Aiming to make crypto trading simple and accessible, CoinEx has always put users’ experience at the heart of its operation. Therefore, CoinEx has been improving its platform to empower users to trade with peace of mind. Simultaneously, user trust can drive the exchange's growth and ability to provide a transparent, fair trading environment. After all, financial freedom requires an environment of trust.
Looking ahead, CoinEx pledges to uphold 100% reserves while exploring more transparency initiatives to strengthen user trust and protect platform integrity. Users will always enjoy a secure and reliable trading environment with funds fully guaranteed.
On the other hand, as a comprehensive trading platform supporting 700+ cryptocurrencies and 1,100+ trading pairs, CoinEx aims to make crypto trading easier for all by strengthening its security system and safety measures to empower more individuals to embrace crypto with peace of mind.
CoinEx reserves the right to the final interpretation of this Proof of Reserve Data announcement.
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