What is proof-of-reserves? At its core, proof-of-reserves is a public demonstration that a custodian holds the assets it claims to hold on behalf of users, typically using cryptographic methods and onchain transparency. If every crypto exchange can publish a proof-of-reserves (PoR) report, why can withdrawals still be delayed or halted during a crisis? The truth is that proof-of-reserves is not a trust guarantee. It shows whether verifiable assets exist on a platform at a single point in time, but it does not confirm that the platform is solvent, liquid or…
Why Proof-of-Reserves Isn’t Enough to Trust Crypto Exchanges
