The global crypto ecosystem faced a blow with the collapse of the biggest crypto exchanges like FTX and Voyager. This has led to an erosion of trust amongst the users. In such a situation, CoinDCX, India’s leading crypto exchange took a step to establish the trust back by releasing their proof of reserves and liquidity with a statutory auditors certificate. Proof of reserves and Proof and liabilities are a part of the proof of solvency. It enables users to track the value and usage of their funds in real time. In this, Reserve to liability is an important metric to measure solvency. If the ratio of assets of the organization to its liabilities is 1 then it indicates that the organization has enough asset classes to back its liabilities. For CoinDCX this ratio is more than 1. As of Dec 15th, 2022, its total asset value stands at USD $157 million and total liabilities at USD $155 million. CoinDCX partnered with Coingabbar to provide a no-bias third-party overview of the audit in order to lay a strong foundation of trust and transparency. Paras Malhotra, SVP - Exchange Operations, CoinDCX states that building trust is a process and measures have to be taken consistently. For the same reason, CoinDCX took the call of not having native tokens, unlike other crypto exchanges. Apart from this, having a strong KYC process, regular INR and trade surveillance, no manipulation of records, and releasing proof of reserves every quarter going forward are some processes that the organization has opted for as regular practices for self-governance.
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