Dear CoinEx users,
As a safe, stable, and efficient crypto trading platform, CoinEx sees it as our bottom line to ensure the security of user assets. Since its launch in 2017, CoinEx has promised and practiced 100% reserve: We will never embezzle user assets for other purposes or any reason and will continue to achieve 100% withdrawal of users. To make it easier for users to understand the asset transparency of the platform, CoinEx has launched Proof of Reserve on Dec 15, 2022 (UTC), supporting BTC, ETH, CET, USDT, USDC, SHIB for the first batch of proof, and more proof of reserves along the way.
What is Proof of Reserve?
Proof of Reserve is an asset audit method to verify whether there are sufficient assets on chain to match the book of user assets on the platform.
In CoinEx, we use the "Merkle Tree" as an audit method to prove that the platform maintains a 100% reserve rate. This audit methodology requires three key steps for verification:
1. CoinEx uses "Merkle Tree" as a data structure to encrypt user assets and publish the total assets of all users at the same time.
2. CoinEx displays the total assets of all on-chain wallet addresses and wallets held by the platform.
3. By comparing the total assets of all users with the total assets of all on-chain addresses on CoinEx, users can verify the asset reserve rate of CoinEx.
When the total on-chain assets on CoinEx are greater than or equal to the total assets of the user, it proves that CoinEx maintains a 100% reserve rate, keeping user assets intact.
Web Entry: Bottom navigation bar - Proof of Reserve
How to Prove Reserve
The development of CoinEx is inseparable from the trust and support of all our users. In the future, we will continue to fulfill the promise of 100% reserve, provide a 1:1 reserve rate for user assets, and maintain reserve transparency plus platform assets, constantly offering a safe, reliable, fair, and transparent trading environment.
CoinEx reserves the right of final interpretation of this announcement.
Dec 16, 2022