This year's crisis of significant crypto ecosystems, such FTX and Terra Luna, brought to light the importance of transparency surrounding the actual reserves held by exchanges and businesses. The public was shown the proof of reserves by the cryptocurrency exchange Bitfinex amidst the continued fear, uncertainty, and doubt (FUD) in the cryptocurrency market.
Major cryptocurrency exchanges, including Binance, OKX, Kucoin, and Crypto.com, have recently made a commitment to sharing their proof of reserve in an effort to restore investor confidence. Paolo Ardoino, CTO of Bitfinex, published the list of the main Bitfinex wallets, which was most recently updated on November 11.
Ardoino posted Bitfinex's proof of reserves on GitHub, as shown above, and included a list of 135 cold and hot wallet addresses in total. He provided a list of some of the company's important holdings, including 204338.17967717, to save consumers the pain of having to look through the addresses.
Back in June 2018, Bitfinex created an open-source framework called Antani with the goal of promoting transparency with regard to evidence of solvency, custody, and off-chain delegated proof of vote. Ardoino revealed Bitfinex's ambitions to resurrect the system that would let users see their balances without jeopardizing anonymity, which had previously gone under the radar.
According to Antani's whitepaper, users would be able to cryptographically verify their balances, removing the possibility of depegging and enabling Bitfinex users to validate the presence of their assets.
While the community welcomed the news, some people noted that it was incomplete because it did not include Bitfinex's liability estimates.
Ledger, a manufacturer of hardware-based cryptocurrency wallets, experienced a brief server outage as a result of the significant cryptocurrency exchange outflows that occurred during the FTX bloodbath.
Ledger CTO Charles Guillemet explained that after the FTX earthquake, there was a "huge outflow from exchanges to Ledger security and self-sovereignty solutions." He also noted that the systems were immediately up and running.