Proof-Of-Reserves Is B.S.?

Jesse Powell, the founder of one of the oldest cryptocurrency exchanges in the world, U.S.-based Kraken, took to Twitter to voice his thoughts on the rise of the Proof-Of-Reserves trend. 

Here is his initial two-part Twitter thread on November 22 highlights what a Proof-Of-Reserves audit must have:

Then it got interesting. Powell responded to a November 25 breaking news Tweet from Tree of Alpha that stated: BREAKING: Binance Releases Proof Of Reserves System.

What was Powell’s response? A yuge burn on Binance. 

He continued, tweeting: “This is simply “here’s a hash of your record in the BTC spreadsheet.” ok… but what’s the point? The whole point of this is to understand whether an exchange has more crypto in its custody than it owes to clients. Putting a hash on a row ID is worthless without everything else.”

Powell still wasn’t done. In a big warning to the entire industry, he criticized a article praising Binance for its Proof-Of-Reserves announcement.

We’ll keep you updated as this story progresses. 💩

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