Popular Crypto Exchange Holds 20% of its Reserves in Shiba Inu

According to a Proof of Reserves dashboard, Crypto.com holds nearly $570 million in Shiba Inu. The total reserves with the exchange are over $2 billion — of which $900 million are allocated to Bitcoin.

Shiba Inu (SHIB) is the second-largest reserve holding, according to a dashboard of Crypto.com’s Proof-of-Reserves issued by creator and CEO Kris Marszalek. The exchange has more than $2 billion in total reserves, of which it currently has about $570 million in SHIB.

Over 30% of the portfolio is made up of its largest holding, which is Bitcoin, with a market value of almost $900 million. Ethereum, with a value of around $500 million, received the third-largest allotment. More than 17% of the reserves are held in ethereum. The USDC and USDT stablecoins each account for somewhat more than 5% of their allotment.

Marszalek tweeted stating that this represents only a portion of their reserves. He added that over the following several weeks, the exchange will publish a fully audited Proof-of-Reserves. Additionally, it seeks to maintain its status as a secure platform and work with complete openness.

CZ Calls for Proof-of-Reserves For Transparency

Binance CEO Changpeng Zhao announced that his exchange would soon begin a Proof-of-Reserves audit mechanism to provide verification of its digital asset holdings in response to the liquidity problems surrounding FTX.

In a tweet on November 8, Zhao promised to develop a Proof-of-Reserve system at Binance in order to give “complete transparency” through the use of Merkle Trees, a data structure used to more effectively and securely encrypt blockchain data. An impartial third party usually performs a Proof-of-Reserve audit to make sure the assets belonging to the custodian are indeed owned as stated.

The decision by the CEO of Binance to deploy Proof-of-Reserves comes after Binance agreed to buy crypto exchange FTX on Nov. 8, which CEO Sam Bankman-Fried first dismissed as having financial trouble.

In a tweet on November 8, Chainlink CEO Sergey Nazarov voiced his opinion that a cryptographic-based Proof-of-Reserves system “is becoming the new industry standard” and might give investors a clearer image of the solvency position of a trading venue or financial business. Nearly everyone on Twitter supported the concept of increased Proof-of-Reserve audits, and prominent members of the crypto industry commented on Binance’s action.