After the collapse of crypto exchange FTX, companies in the sector rushed to publish their proof of reserves. Finally, proof of reserves are the subject of much criticism, with many people believing that they are not sufficient and still do not guarantee optimal security for investors. The situation now puts the exchanges in a difficult situation, as confidence is still not restored. Moreover, in recent days, platforms like Binance have seen a lot of investors withdraw their cryptos. The debate becomes more lively. For the good of the crypto industry, Vitalik Buterin, the founder of Ethereum wants exchanges to provide better reassurance.
Crypto exchanges need to be clearer
Vitalik Buterin, co-founder of Ethereum, foresees to develop a protocol for exchanges to automatically disclose their reserve evidence to users.
The objective is to give the user the information necessary to judge whether or not a crypto platform is suitable for him. This would provide more transparency and clarity to the crypto industry, which will help restore trust.
Vitalik Buterin announced that he will use Binance as a guinea pig to test the new protocols. If successful, this solution could become the unit of measurement in the world of crypto exchanges. This would then allow industry players to align with the requirements of these protocols.
For his part, Changpeng Zhao, the CEO of Binance, has so far shown no opposition to the issue. On the social networks, thousands of users supported the idea and strongly called for its rapid implementation. It is estimated that the idea should get a unanimous welcome, as Vitalik Buterin is one of the most influential crypto personalities. On Reddit, user @deathbyfish13 wrote: “He says what we all think, luckily a lot more people are listening to him.”
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