Since the recent collapse of FTX, the universe of Blockchain and that of cryptoassets is comparable to a battleground. The leaders of the sector do not hesitate to take out spears and javelins to attack their rivals. This is the case of Jesse Powell, CEO of Kraken who openly takes the Binance crypto platform to task. The first believes that proof of Binance reserves is “useless without liabilities”.
Nothing is going well between Binance and Kraken
It goes without saying that the importance of reserves for trade of crypto is well established since the bankruptcy of FTX. Only, for Jesse Powell, this operation will be complete when the audit includes in its analysis the sum of customer liabilities.
This will allowavoid embezzlement of client funds and to have a total capital perceptionI. It will also be useful for monitor trade on the platforms according to the quantity of cryptocurrencies available.
In his desire for transparency, Powell demands among other measures:
- the sum of accounts receivable liabilities;
- easily verifiable crypto proof that each user account was included in the audit;
- signatures attesting to the control of each custodian over the exchange portfolios.
Moreover, the proof of reserves published by Binance included a system not including accounts with negative balances. This system simply allows all Binance users to verify their assets using a merkle tree. Powell insists that reserves are nothing more than assets minus liabilities and not an exhaustive list of portfolios.
It also asks media men and journalists to avoid overselling or misleading consumers. On the other hand, he advises them to better understand the reasons for proof of reservations.
In response to the various allegations made against his company, the CEO of Binance, Changpeng Zhao “CZ” shared some upcoming Binance plans. These include third-party auditors to ensure the reliability of the proof of reserves offered by his company.
Public comments have been disabled on the post with the questions and verifications.
Conclusion
CZ’s response to Powell’s attacks has been very well approved by the whole community. Because it must be said, few members of the community disapproved of the use of a trusted listener as Jesse Powell wanted. This outing received a mixed reception within the community. The gap is therefore dug between these two greats strongly that they can find a compromise.
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