In response to the worries of increasing transparency, Coinbase has unveiled proof of reserves (POR) for his packed Bitcoin -Token, CBBTC.
This step is intended to ensure that every CBBTC is supported 1: 1 by Bitcoin (BTC) in possession of the Exchange.
Coinbase unveils CBBTC certificate from reserves
According to the POR data, the Coinbase exchange has a total reserve of 26,525.15 BTC, with a corresponding CBBTC feeding of 26,461.05 tokens.
The distribution of CBBTC over various networks is as follows: Ethereum Host 16.080 CBBTC, base contains 7,655,391 CBBTC, Solana has 2,673,489 CBBTC and Arbitrum has 51,395 CBBTC.
CBBTC proof of reserves. Source: Coinbase
Coinbase also revealed the specific Bitcoin addresses and their balances, improving the transparency of his reserves. According to the data, the wallet contains 690 BTC with the majority of these reserves, worth around $ 65.8 million at current rates. In the meantime, 40 portfolios contain 480,984 BTC each. The remaining BTC is spread over various other portfolios.
This development is on the heels of criticism of prominent figures in the cryptocurrency community. Justin Sun, founder of Tron, formerly CBBTC of considering CBBTC because of his observed lack of transparency and centralization.
As Beincrypto reported, Sun expressed his concern that CBBTC was missing a proof of reserve, was not audited and the balances could freeze at any time. Sun warned that such a centralized control could lead to the seizure of assets in response to government actions.
“CBBTC lacks proof of reserve, no audits and can freeze someone’s balance at any time. In essence it is just ‘trust me’. Every day of the US government can seize all your BTC. There is no better representation of the Central Bank Bitcoin than this. It is a dark day for BTC, “Justin Sun wrote on X.
While the introduction of POR for CBBTC tackles some transparency problems by Coinbase, user institutions continue to exist.
“You also talked about evidence or reserve for Solana, but it happened to be wrong and our transactions were stuck for more than 24 hours,” a user challenged X.
The user refers to recent incidents with delays in Solana (SOL) transactions on the platform, so that the implementation of more than 14 hours is waiting. This led to speculation that Coinbase could set up the solution of users without permission, which causes delays as a result of the Onstak process. Such practices have asked questions about the liquidity and operational integrity of the stock market.
“Deposit Sol to Coinbase, they take your Sol and put it in to earn your appearance from your deposits, and oops – If everyone wants SOL in one go, they don’t have your liquidity,” summarized a user.
In particular, Coinbase -support has attributed the delays to ‘technical and blockchain problems’. Nevertheless, users called for clear evidence of liquidity and operational integrity. In the light of these events, the cryptocurrency community continues to argue for increased transparency and accountability by centralized exchanges.
Coinbase’s implementation of CBBTC certificate from reserves is a step towards rebuilding trust. Current control suggests that users remain vigilant Manage and secure their assets on such platforms.
