Justin Solar has taken to X (previously Twitter) to elucidate that “all exchanges in the industry have already implemented proof of reserves (PoR).” He adopted up this pronouncement by additional emphasizing that “there is only one explanation for why” exchanges have but to do it — “they are unable to meet the requirements.”
This reveal was considerably stunning as Poloniex, a cryptocurrency alternate owned by Solar, has not applied PoR, and as such we’re pressured to conclude that Poloniex can also be “unable to meet the requirements.”
Poloniex has a web page on its web site that claims to be a “Proof of Reserves,” however this web page solely reveals how a lot Tron is on Poloniex, neglecting each single different asset.
These points develop into particularly fascinating in gentle of the truth that Solar has just lately targeted so a lot of his criticisms on the newly launched cbBTC, Coinbase’s wrapped-Bitcoin product. He has repeatedly emphasised that the dearth of disclosure surrounding the place the bitcoins are saved represents a elementary downside with cbBTC.
Nonetheless, once more, Poloniex is an issue. Poloniex presents a well-liked Bitcoin on Tron product that’s far bigger than cbBTC. This product has a market cap of roughly $6.7 billion, far bigger than the $110 million that cbBTC represents. Poloniex additionally refuses to reveal the place the bitcoins for this product are held.
Much more troubling, the Poloniex product represents greater than half of all bitcoin at Solar-advised HTX, making Solar’s insistence on these cbBTC points much more inexplicable.
Learn extra: Launch of cbBTC, WBTC competitor, sparks Justin Solar hypocrisy
Poloniex has beforehand dedicated to offering a PoR audit, however no audit has been offered for Poloniex, and Solar now insists that “auditors can’t guarantee that the funds are still on-chain.”
Protos has reached out to Poloniex about these points, however at press we’ve got not heard again.
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