MEXC Global publishes proof of reserves after month long testing

On Feb. 22, cryptocurrency speech MEXC Global released its proof-of-reserves (PoR) snapshot aft 45 days of testing. In a papers seen by Cointelegraph, MEXC claimed its reserve ratios for Tether (USDT), USD Coin (USDC), Bitcoin (BTC), and Ethereum (ETH) were 120.70%, 240.18%, 116.50%, and 110.53%, respectively via the Merke Tree method. 

As of the day of snapshot connected Feb. 10, MEXC held 232.4 cardinal USDT, 33.0 cardinal USDC, 1,869.0 BTC, and 12,472.0 ETH successful custodied idiosyncratic assets. Meanwhile, the full assets held wrong MEXC wallets for the 4 coins were 280.6 USDT, 79.4 cardinal USDC, 2177.5 BTC, and 13,785.6 ETH, respectively. A spokesperson for MEXC told Cointelegraph:

"MEXC volition supply monthly updates connected users' plus information done the Merkle Tree. This Proof considers beardown Proof that our users' assets are disposable for 1:1 redemption astatine immoderate time. As the manufacture becomes much regulated, we whitethorn disclose further information that our users need. "

The spokesperson said that the speech besides plans to found a "MEXC Investor Protection Fund" connected apical of existing measures to safeguard users' assets. Prior to the announcement, MEXC published a list of wallet addresses belonging to the exchange. When asked astir regulation, the spokesperson explained that MEXC had obtained Money Service Business licenses successful the U.S., Canada, Switzerland, and Estonia and that "clear regulatory standards are truthful important for the full industry."

While exchanges person welcomed the PoR method arsenic a gauge of fiscal health, different experts disagree. Jack Graves, a teaching prof of instrumentality astatine Syracuse University, cautioned investors that PoRs bash not uncover different cardinal accusation specified arsenic liabilities and leverage. "You tin audit however galore assets a crypto speech has on-chain, but however overmuch of it is pledged arsenic collateral? That's a batch harder to fig retired unless you person entree to their fiscal services, books, and records, […]," helium explained. 

The MEXC Reserve Ratio study | Source: MEXC Global