A Snapshot of Confidence
On February 22, MEXC Global took a big step by releasing its proof-of-reserves (PoR) data after spending a patient 45 days tweaking and testing. Let’s get into those ratios, shall we? According to their documentation, MEXC’s reserve ratios show off some impressive numbers: 120.70% for Tether (USDT), a whopping 240.18% for USD Coin (USDC), 116.50% for Bitcoin (BTC), and 110.53% for Ether (ETH). Not too shabby, right? All thanks to the illustrious Merkle tree method!
The Numbers Game
As of February 10, the snapshot revealed MEXC was sitting pretty with:
- 232.4 million USDT
- 33 million USDC
- 1,869 BTC
- 12,472 ETH
In total, these numbers paint a rather sweet picture with MEXC’s wallets holding 280.6 million USDT, 79.4 million USDC, 2,177.5 BTC, and 13,785.6 ETH. That’s a lot of digital gold!
Transparency is Key
A spokesperson from MEXC pointed out that they plan to keep users in the loop with monthly updates about asset data using the Merkle tree. “This is strong proof that our users’ assets are available for 1:1 redemption at any time. As regulations tighten, we’re ready to provide even more user-needed data,” they said. Because who doesn’t love a good update?
Looking Ahead: User Protection
But that’s not all; MEXC is also gearing up to unveil an “MEXC Investor Protection Fund.” Sounds fancy, right? This fund is intended to offer even more security for users’ assets. Just earlier, MEXC had released a list of wallet addresses, further enhancing transparency. The spokesperson gave us a glimpse into their regulatory efforts too: they’ve secured money service business licenses in the United States, Canada, Switzerland, and Estonia.
The Skeptic’s Corner
While the PoR method has been hailed by some as a beacon of financial health, others remain skeptical. Legal eagle Jack Graves from Syracuse University threw caution into the wind stating that while you can audit a crypto exchange’s on-chain assets, figuring out liabilities and leverage is a whole different ballgame. “How much of it is pledged as collateral?” he challenged, underscoring the complexities of financial clarity in the crypto space.
