India-based crypto exchange WazirX is just the latest cryptocurrency exchange to provide a proof of reserves, in an effort to show transparency to users.
After the FTX imploded and the scandal of its bankruptcy erupted, the crypto industry started to experience an increasing amount of turmoil. In order to keep customers’ minds at bay, a growing number of crypto service providers started to make their reserve funds public. WazirX, on the 11th of January 2022, announced on its website its own transparent act.
The crypto exchange stated that it is the largest cryptocurrency exchange in India, by volume. Furthermore, the company wanted to prove that it also had the largest quantity of reserves when considering crypto exchanges in India.
In order to showcase WazirX’s proof of reserves, the company leveraged a digital asset tracking platform, the third-party service provider Coin Gabbar. As indicated by the company, WazirX currently possesses close to USD 285 million in user assets, in total. Also, the assets are currently held in Tether.
WazirX also stated that 90 per cent of its user assets are held in wallets provided by Binance. The rest of them, 10 per cent, are split between cold and hot storage wallets. In total, the reserves contain close to USD 256.5 million in Binance-based wallets and USD 28.5 million in other storage wallets.