As events has turned out recently, there is no way we could trust their proof of reserve for any reason, at first I was cool with the development but after a deeper look into the whole scenario, I now discovered that those tracking sites are centralized and own by top exchanges which make them not to be trusted with their data and information.
Coinbase is not trusted to bring a generally accepted information.
Topic: Coin market cap launches proof of reserves tracker for exchanges. (Read 205 times)
November 28, 2022, 05:40:08 AM
November 24, 2022, 09:08:01 PM
Coinmarketcap is now a tool to directly promote Binance.
I once was a fan of this site although it has already been questionable in its early years even before it was bought by Binance. I remembered coinmarketcap allowed Ponzis and scams to be promoted in its platform.
Now, it is nothing but a way for CZ to make sure Binance is always the number 1. So I don't think this new feature is a big deal. CMC will always add new features for as long as Binance has the top position, for as long as it would boost Binance's image to the public. Newbies will always choose the number 1, and CMC always makes sure it's always Binance.
I once was a fan of this site although it has already been questionable in its early years even before it was bought by Binance. I remembered coinmarketcap allowed Ponzis and scams to be promoted in its platform.
Now, it is nothing but a way for CZ to make sure Binance is always the number 1. So I don't think this new feature is a big deal. CMC will always add new features for as long as Binance has the top position, for as long as it would boost Binance's image to the public. Newbies will always choose the number 1, and CMC always makes sure it's always Binance.
November 24, 2022, 03:33:32 PM
Once Coingecko (and other tracking sites) introduce that feature (which is just matter of time), I am pretty sure that Binance will be there at the first spot as well. Hell, they are listed as the top exchanges there as well. They are by far the biggest exchange at the moment, whether we like it or not so its expected to have biggest proof of reserve numbers.
I was not saying they are not on top by volume, but we are talking about proof of reserves here, and CoinMarketCap doing that is the same thing as CZ doing it, so I don't trust them.Coingecko already added information for Reserves in their standard page for exchanges, there are two options Available and Unavailable, and they are not owned by any known centralized exchange.
It's interesting that Coinbase, Gemini and Binance US exchanges reserves are not Available for Coingecko right now, and it's the same thing for CoinMarketCap.
https://www.coingecko.com/en/exchanges
Centralized exchanges can now use this alleged proof of reserves, to lure new customers again to keep coins in their accounts... until the next exchange collapse.
November 23, 2022, 12:21:05 PM
CMC is also centralized own and controlled by Binance dso what difference does it make, if there can easily dash out fake information and available public wallet balance?
I don't think they are not that stupid. Most of these reserves are posted by the exchange themselves or found through wallet analysis, people can easily verify it. But if they do that, then ignoring and spamming about this issue on their social media should help. But I do agree that the data is difficult to trust even if it just links to an address posted by the exchange itself. Better not to trust any cex and move your funds regularly if you are not day trading. 
November 23, 2022, 09:01:21 AM
Why do I think that this site will turn into a tool to intimidate small platforms because of the ease of providing misleading information and the possibility of spreading rumors or at least manipulating data for the benefit of Binance?
November 23, 2022, 03:18:09 AM
CMC is also centralized own and controlled by Binance dso what difference does it make, if there can easily dash out fake information and available public wallet balance?
I don't advise you or anyone trust them on this, and besides this is not a new thing we already have other platforms providing that information to the public.
But the problems how accurate are their information, just like we have fake trading volume on exchange we can still have a fake exchange reserve balance.
I don't advise you or anyone trust them on this, and besides this is not a new thing we already have other platforms providing that information to the public.
But the problems how accurate are their information, just like we have fake trading volume on exchange we can still have a fake exchange reserve balance.
November 22, 2022, 05:51:09 PM
plus maybe CMC would have more authority if it was more independent, and not like part of Binance.
Tbh, CMC used to be even worse and less reliable (not saying that it should be trusted now either, on the contrary) than it is now prior to Binance takeover. I remember the days when scam exchanges like HitBTC and P2PB2B were listed as one of the top exchanges and at least now they are nowhere near the top meaning newbies having less chance to register there. Nothing strange than to see that Binance exchange is now listed in first place ow their Proof of reserve tracker...
Once Coingecko (and other tracking sites) introduce that feature (which is just matter of time), I am pretty sure that Binance will be there at the first spot as well. Hell, they are listed as the top exchanges there as well. They are by far the biggest exchange at the moment, whether we like it or not so its expected to have biggest proof of reserve numbers. Regarding this new feature, I have no doubt that newbies will use it without hesitation and will trust it blindly. After all, that's CMC's target audience. This proof of reserve thing will be like trading volume, every exchange will bullshit about it to some degree and there will be no way to know for sure how legit those numbers are.
November 22, 2022, 05:04:42 PM
This will lead to a false sense of security: you can't know how much is in the users' balances, so you can't know if the exchange has enough funds to cover them.
This is the main problem with proof of reserves.
It is fundamentally wrong, as you cannot really prove anything with it.
At most, some third party Auditor will verify it, but then we would be trusting him.
November 22, 2022, 04:51:26 PM
Isn't CoinMarketCap owned by Binance exchange? 
That makes it very strange, and I never fully trusted any information they posted after ownership was changed.
Nothing strange than to see that Binance exchange is now listed in first place ow their Proof of reserve tracker... funny thing that Binance moved a lot of coins after they reported it as ''proof''...
Please take everything you see on this CMC website with a grain of salt.
That makes it very strange, and I never fully trusted any information they posted after ownership was changed.
Nothing strange than to see that Binance exchange is now listed in first place ow their Proof of reserve tracker... funny thing that Binance moved a lot of coins after they reported it as ''proof''...
Please take everything you see on this CMC website with a grain of salt.
This will lead to a false sense of security: you can't know how much is in the users' balances, so you can't know if the exchange has enough funds to cover them.
Yes, it's the same old ''safu'' stuff in brand new shiny packaging. 
November 22, 2022, 03:57:53 PM
Quote
...This development ...
... this feature, the current financial conditions of exchanges are made public
... this feature, the current financial conditions of exchanges are made public
CMC invented nothing, it's already available for public everywhere. They developped nothing, they're just aggregating data from other places
plus maybe CMC would have more authority if it was more independent, and not like part of Binance. This is how I completely agree with LoyceMobile, Binance provides us with a new false security, and that is exactly what creates the most problems in the crypto world.
This will lead to a false sense of security: you can't know how much is in the users' balances, so you can't know if the exchange has enough funds to cover them.
November 22, 2022, 12:52:09 PM
This will lead to a false sense of security: you can't know how much is in the users' balances, so you can't know if the exchange has enough funds to cover them.
November 22, 2022, 12:51:49 PM
November 22, 2022, 12:49:58 PM
Good development from the concerned cryptocurrency community even as we can not guarantee the safety of deposits on these publicly listed wallets, and those that have control of these wallets can go banana by walking away with everything.
Reserve tracking may help users of the exchange to make informed decisions, by not leaving money on any of those exchanges.
Reserve tracking may help users of the exchange to make informed decisions, by not leaving money on any of those exchanges.
November 22, 2022, 11:03:33 AM
Quote from: https://cointelegraph.com/news/coinmarketcap-launches-proof-of-reserve-tracker-for-crypto-exchanges
CoinMarketCap, a leading market researcher and tracker in the crypto industry, announced the launch of a new feature on its platform that gives users updated financial insights on exchanges.
The proof of reserves (PoR) tracker audits active cryptocurrency exchanges in the industry for transparency on liquidity at a given moment. According to the announcement, the tracker details the total assets of the company, and its affiliated public wallet addresses, along with the balances, current price and values of the wallets.
CoinMarketCap reports the PoR trackers will update data every five minutes. On Nov. 22, the company tweeted a guide for users on how to navigate the tool.
As recent unfavorable events in the cryptocurrency market in the past few days-weeks get more tough, with cryptocurrency businesses crashing and funds getting locked up on exchanges, coin market capitalization one of the leading cryptocurrency researchers and databases watch have introduced a new feature on the site, we're cryptocurrency users can see exchanges reserve and public wallet balance.The proof of reserves (PoR) tracker audits active cryptocurrency exchanges in the industry for transparency on liquidity at a given moment. According to the announcement, the tracker details the total assets of the company, and its affiliated public wallet addresses, along with the balances, current price and values of the wallets.
CoinMarketCap reports the PoR trackers will update data every five minutes. On Nov. 22, the company tweeted a guide for users on how to navigate the tool.
This development was announced on the platform tweeter handle.
this development from the coin market cap is a welcome development since recent events show that the CEO of exchanges is taking funds that are available for the running of the exchanges and putting it into other ventures or financing their personal lifestyle. E.G FTX exchange situation.
With this feature, the current financial conditions of exchanges are made public even though this can not solve the problem of exchange crashes and hacks in totality it will help to monitor their current balance to see what their reserve hold.
Jump to: