At the moment, the disclosure of proof of reserves is on the rise among crypto exchanges. They clearly have no choice after the bankruptcy of the American exchange FTX, valued at 32 billion dollars. For Grayscale, there is no question of adopting a panurgic attitude. There is also no question of lifting the sail on its reserves in bitcoin or ether. Safety takes precedence over everything else.
Grayscale thinks outside the box
” Due to recent events, it is understandable that investors are more questioning their cryptocurrency investments. In this thread, we have compiled additional information on asset safety and security by our digital asset products »
In a article published on his website On Nov. 18, crypto investment firm Grayscale claimed that it will not share any data regarding its holdings or reserves. The reason is in this text excerpt:
” Due to security concerns, we do not make this on-chain wallet information and confirmation information publicly available through cryptographic proof of reserve, or other advanced cryptographic accounting procedure.. »
In addition to security issues, Grayscale also discussed:
- the safety of its digital asset products, due to frequent audits;
- the establishment of these products as a separate legal entity: investment trust and SARL;
- Coinbase Custody Trust Company, LLC. owns all digital assets that underpin Grayscale’s digital asset products;
- these cannot be loaned or borrowed, stipulate the terms of the custodial agreement with Coinbase Custody.
If the absence of transparency is one of the flaws of FTX, Grayscale does not suffer no such handicap. ” We also provide investors directly with GAAP audited financial statements in accordance with each product’s governing documents for our three most recent private placement products, which are not currently publicly traded. », we specify in the press release. Additionally, the fact that Coinbase Custody engages in frequent on-chain validations, as part of Grayscale’s custody operations. This makes disclosing information about the investment company’s crypto reserves impossible.
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