Can crypto exchagnes regain users trust with PoR? - page 2.

crzy

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Quote from: ChillyMatthew on December 01, 2022, 07:16:32 AM

Since I'm genuinely unsure of whether I'm missing something, I figured I might get some helpful insights from more experienced people here.

Is PoR actually enough after all that has happened so far? Huh

This is not enough of course but knowing the PoR from CEX can at least give you peace of mind but again, it is still not advisable to hold too much money on any exchanges because the worst can still happen and that PoR might not be enough to cover all the losses. We have to learned from happened to FTX and other exchanges before, holding crypto on any exchanges for long term is not safe, so start using hard wallet now or other cold wallet where you have control, exchanges seems to be more risky in long term.

TravelMug

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And who will say if they have PoR or not? CZ? doesn't make sense because he has his own exchange and the numbers he is putting on his controlled coinmarketcap as far as the ratings of exchanges are not to be trusted.

So it's either we trust the exchange that we are using right now or not and move to others, simply as that.

PoR wouldn't add anything to us, at least that's how I see this all PoR that exchanges are trying to do.

MAAManda

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Quote from: ChillyMatthew on December 01, 2022, 07:16:32 AM

Is PoR actually enough after all that has happened so far? Huh

No, I think PoR alone is not enough to gain user trust, did you know that some time ago there was information that stated that various exchanges formed a coalition to lend and borrow funds for PoR purposes? Because of that, PoR alone is not enough, exchanges need to also make their PoL (Proof-of-Liability) reports, with the combination of PoR and PoL, I think it will be enough to gain users' trust.

avikz

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Quote from: ChillyMatthew on December 01, 2022, 07:16:32 AM

GM crypto fam. Happy December!

I've seen that several exchanges are trying to increase client transparency after the FTX crash by disclosing their Proof of Reserves. Since there is no way to determine whether the exchange is not using client funds to cover hidden debt or anything, I personally don't buy any of this.

Proof of reserve is a good idea and Binance has already implemented this to show their liquidity to their users. That worked well for them! I am not sure if anyone else is doing that, but if other exchanges are planning to follow the same, that will be great!

However, that's not the only indicator you should rely on. It doesn't show their debt in the market. It doesn't show where they have invested their money. It doesn't show how quickly they can liquidate their investment if needed.

In order to achieve complete control of your funds, either move to a decentralized exchange that doesn't hold your fund, or stop keeping your funds in the exchange wallet. As simple as that!

rhomelmabini

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Quote from: ChillyMatthew on December 01, 2022, 07:16:32 AM

Is PoR actually enough after all that has happened so far? Huh

Of course we can't get enough, maybe for the meantime we see that it creates an assurance that it has transparency but if issue arise, people will doubt it. Overall the solution will be monopolized by the government by implementing a regulation to these centralized exchanges.

pawanjain

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Quote from: ChillyMatthew on December 01, 2022, 07:16:32 AM

GM crypto fam. Happy December!

I've seen that several exchanges are trying to increase client transparency after the FTX crash by disclosing their Proof of Reserves. Since there is no way to determine whether the exchange is not using client funds to cover hidden debt or anything, I personally don't buy any of this.

Since I'm genuinely unsure of whether I'm missing something, I figured I might get some helpful insights from more experienced people here.

Is PoR actually enough after all that has happened so far? Huh

Source: https://app.getresponse.com/view.html?x=a62b&m=BVGySe&mc=9I&s=BtgXWnG&u=QcLhh&z=EShzGUd&

Since Proof of Reserve is a new thing it would be too soon to say whether it is enough to regain user trust.
It also depends on what is the proof of reserve and it's significance on the users.
But I must say that Binance has played it really smart. They have gone to the safer side with the PoR.
It is at least better than no audit at all.

Beparanf

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Yes if they will submit the PROPER PoR that records all information including assets and liabilities of exchange. Most of the exchange only provides there balance on there hot wallet which is not enough basis that they are really holding enough funds to cover all users balance 1:1. Remember that FTX issue arise when there balance sheet is already not enough to cover user balance 1:1 after one of there biggest investors remove there investment.

This information should be given too as subsequent documents to PoR to verify if the reserves is still sufficient or not. Current CEX PoR is useless and just a props to quench the doubt and curiosity of all there user. CZ introduced a fancy merkle tree for this but still not enough to explained the complete balance sheet of Binance.

shinratensei_

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Quote from: ChillyMatthew on December 01, 2022, 07:16:32 AM

GM crypto fam. Happy December!

I've seen that several exchanges are trying to increase client transparency after the FTX crash by disclosing their Proof of Reserves. Since there is no way to determine whether the exchange is not using client funds to cover hidden debt or anything, I personally don't buy any of this.

The exchange site operational cost was a lot and relying from the fees will not be enough to keep the exchange site alive for long term. Doing diversification was a must but the exchange site wanna get instant return and that's why most of them were using client's fund for debt, re investing or etc.
The problem is exchange site like ftx was using too much user's money. that was draining liquidity.

Quote from: ChillyMatthew on December 01, 2022, 07:16:32 AM

Since I'm genuinely unsure of whether I'm missing something, I figured I might get some helpful insights from more experienced people here.

You'r not missing something. The blockchain itself was transparent but the exchange site itself didn't wanna try to reveal the reserved funds owned by exchange site.

Quote from: ChillyMatthew on December 01, 2022, 07:16:32 AM

Is PoR actually enough after all that has happened so far? Huh

It's enough as long as the exchange site wanna publish the place that being used to store the reserved funds. At least we can track it easily and know what has been happening with reserved funds

Yatsan

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Announcing proof of reserve would be a plus to those who would but we just cannot demand for it. Best thing is to do our part of responsibility such as not storing huge amount in exchangers treating it like a wallet. Also, from being in this industry for years, this is the first time I've saw an actual negligence from exchanger's end so I think it would be wrong to generalize the situation for it would just complicate things. Risk is always involved in this industry and losing is a part of it. So if you cannot endure things (i'm not normalizing what happened), or even look with the possibility, then investments might probably not suit you.

Quote from: Bitstar_coin on December 01, 2022, 09:09:22 AM

Quote from: ChillyMatthew on December 01, 2022, 07:16:32 AM

GM crypto fam. Happy December!

I've seen that several exchanges are trying to increase client transparency after the FTX crash by disclosing their Proof of Reserves. Since there is no way to determine whether the exchange is not using client funds to cover hidden debt or anything, I personally don't buy any of this.

Since I'm genuinely unsure of whether I'm missing something, I figured I might get some helpful insights from more experienced people here.

Is PoR actually enough after all that has happened so far? Huh

Source: https://app.getresponse.com/view.html?x=a62b&m=BVGySe&mc=9I&s=BtgXWnG&u=QcLhh&z=EShzGUd&

As far as I know, only Binance has come out to announce their proof of reserve idea - in fact, I think they are the first to come up with this, so I don't know why you are saying 'several'.
I don't think users have any choice but to deal with exchanges even if they can not trust them enough, but this is just my opinion because despite what happened some people will still not find it necessary to store their funds in their personal wallet, users are as guilty as the exchange.

If people can use exchanges the way they should be used such an incident will not occur, exchanges are created to enable investors buy their desired crypto and store it in personal wallets not use the exchange as their personal wallets.

Im one with this side. I'd choose to make the adjustment as an investor because that's the right thing to do than to try seeking for changes from them.

btc_angela

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At least though it's better to see how big their wallet is, as far as supporting the trades 24x7.

And I do agree that it is not the perfect solution, and only top tier exchanges can do this. As far as trust goes, it's subjective, so we shall see, still open for debate.

Even coinmarketcap added something like "confidence" in exchanges in their rankings.

https://coinmarketcap.com/rankings/exchanges/

Bitstar_coin

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Quote from: ChillyMatthew on December 01, 2022, 07:16:32 AM

GM crypto fam. Happy December!

I've seen that several exchanges are trying to increase client transparency after the FTX crash by disclosing their Proof of Reserves. Since there is no way to determine whether the exchange is not using client funds to cover hidden debt or anything, I personally don't buy any of this.

Since I'm genuinely unsure of whether I'm missing something, I figured I might get some helpful insights from more experienced people here.

Is PoR actually enough after all that has happened so far? Huh

Source: https://app.getresponse.com/view.html?x=a62b&m=BVGySe&mc=9I&s=BtgXWnG&u=QcLhh&z=EShzGUd&

As far as I know, only Binance has come out to announce their proof of reserve idea - in fact, I think they are the first to come up with this, so I don't know why you are saying 'several'.
I don't think users have any choice but to deal with exchanges even if they can not trust them enough, but this is just my opinion because despite what happened some people will still not find it necessary to store their funds in their personal wallet, users are as guilty as the exchange.

If people can use exchanges the way they should be used such an incident will not occur, exchanges are created to enable investors buy their desired crypto and store it in personal wallets not use the exchange as their personal wallets.

ChillyMatthew

newbie

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GM crypto fam. Happy December!

I've seen that several exchanges are trying to increase client transparency after the FTX crash by disclosing their Proof of Reserves. Since there is no way to determine whether the exchange is not using client funds to cover hidden debt or anything, I personally don't buy any of this.

Since I'm genuinely unsure of whether I'm missing something, I figured I might get some helpful insights from more experienced people here.

Is PoR actually enough after all that has happened so far? Huh

Source: https://app.getresponse.com/view.html?x=a62b&m=BVGySe&mc=9I&s=BtgXWnG&u=QcLhh&z=EShzGUd&

Topic: Can crypto exchagnes regain users trust with PoR? - page 2. (Read 248 times)