CoinDCX publishes over $129M total balance in Proof of Reserves, $68M held on Binance

By Rishabh Mansur
November 24, 2022, Updated on : Thu Dec 01 2022 03:37:34 GMT+0000
CoinDCX publishes over $129M total balance in Proof of Reserves, $68M held on Binance
According to a statement, the company has said its crypto balances and complete list of wallet addresses are available for public viewing and verification.
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Indian crypto exchange CoinDCX today published a list of its on-chain and off-chain balances, as part of its Proof of Reserves report. As per the balances on the Nansen dashboard, CoinDCX held over $129 million in crypto assets at the time of writing.


According to a statement, the company has said its crypto balances and complete list of wallet addresses are available for public viewing and verification.


“We have always maintained a user liability to assets ratio greater than 1:1. As the next step towards implementing transparency, we have published our on-chain and off-chain assets and are also working on implementing cryptographic proof of liabilities in addition to certified audits of our financial health. With this, we want to instill complete trust in the users. We feel that access to transparency is not a privilege but a right of users," said Sumit Gupta, Chief Executive Officer (CEO) of CoinDCX.


"The PoR data will be readily available, and CoinDCX plans to post monthly updates on its Reserves to Liabilities (R2L) ratio, to give customers complete confidence in the health of the company’s business and the safety of investments," the statement added.


R2L ratio, or Reserves to Liabilities Ratio, refers to total assets owned (on/off-chain) to total liability and contingencies.


In its portfolio, CoinDCX holds over $68 million on Binance, through its spot trading and interest-earning services, the Indian exchange confirmed to The Decrypting Story.


Around $55.6 million is held in its own wallet, and around $5.8 million on Polygon staking pools.


In the wake of FTX's collapse and bankruptcy, where user funds were stolen and misused, CoinDCX's announcement also saw the exchange claim that as a self-regulated exchange, it "never exposes user funds to price and credit risk."


All customers can access their funds at any time for trade purposes, it said.


CoinDCX also added it has taken a conscious decision to not have a native token, in order to safeguard users from "the risk of making the exchange’s native token a large part of their portfolio. It has reportedly deployed multi-party-computation (MPC) technology to transfer assets among wallets and ensure security of funds.


The firm has also been iterating that Proof of Reserves is only side of the coin, explaining that it believes in the need to have an equal visibility of liabilities, to ensure a healthy R2L ratio.

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