According to Changpeng Zhao, there are “no negative balances involved” in the proof of reserves for Binance
Following the debut of Binance’s PoR on Friday, the exchange’s founder and CEO Changpeng Zhao stated on Saturday that there are “absolutely no negative balances involved” in the company’s PoR.
In a tweet published on Saturday, Jesse Powell, cofounder and CEO of the cryptocurrency exchange Kraken, said that the listing of assets published by Binance was “pointless without liabilities.”
Powell added in the tweet, “The merkle tree is simply hand wavey crap without an auditor to make sure you didn’t include accounts with negative balances.” “The merkle tree is just hand wavey bullshit.”
In response, Zhao said that Binance’s Proof of Reserves did not count in accounts with negative balances and that “it would be validated in the audit for the following Proof of Reserves.”
In addition, Zhao said that it takes a couple of weeks for independent auditors to do their tasks.
Since the failure of FTX earlier this month, the sharing of proof of reserves has been advocated as a means by which cryptocurrency exchanges may guarantee the secure keeping of their customers’ money.
Also Read: R. Kiyosaki calls the economy the “biggest bubble in history” and advises dumping paper assets