CoinDCX Proof Of Reserves Audit – June 2023

Staying true to our aim for CoinDCX to dedicate itself to introducing simpler products for easier accessibility to Digital Assets and introducing industry best practices comes from the handshake with the philosophy to incorporate the most advanced security measures and compliant structure. 

As a promise made when we first released our Proof of Reserve report in December 2022, CoinDCX is here to share its PoR report every quarter from now on. In this article, we are introducing our new report; for June 2023.

Learn More: CoinDCX Proof of Reserve Audit – March 2023

CoinDCX PoR Report, June 2023:

Keeping our promise of transparency, below are the holdings of CoinDCX as an exchange – as of June 2023.

Source: Coingabbar

The snapshot below shows that, in aggregate, CoinDCX does not take leverage or create any fractional reserves against any user funds. We operate as an exchange in its true sense.

Source: Coingabbar

How Does CoinDCX Assure Simple Accessibility To Digital Assets?

As a brand, CoinDCX has always operated with the aim of simplifying the accessibility of the digital asset for the masses. Some of the features of the app are shared as an example below.

• Crypto Futures
• Earn
• One tap availability of TDS reports
• 2-minute calculation of crypto taxes with KoinX integration

Now that we have taken a look at the current PoR scenario, below are some of the most commonly asked questions regarding Proof of Reserves. 

What is Proof Of Reserves?

In a nutshell, Proof of Reserve can be described as an audit that is simply the method by which an exchange employs the services of a third-party crypto auditor in order to ensure that it has assets on its balance sheet and balances the customer holdings. 

The release of the Proof of Reserve reports from various exchanges started to come in after the FTX fiasco happened last year, which caused the crypto market crash. Sharing of the PoR report was first proposed by Changpeng Zhao of Binance. 

On Proof of Reserve and Liabilities:

• CoinDCX has an order placement system that ensures that assets bought by the users are 1:1 placed under vaults on/off-chain, especially warm/cold wallets. This ensures that for every order placed by users, CoinDCX actually buys or holds crypto assets.
• In our opinion, the much advocated “Proof Of Reserves” provides a standalone asset value, it only showcases one side of the part. There’s no visibility of liabilities. Proof of reserve without Proof of liabilities is only half the picture.
• So let’s take it one step ahead and ensure this with Reserves to Liabilities (R2L) Ratio: Total assets owned (on/off-chain) / Total liability & contingencies.

In my opinion, the much advocated “Proof of reserves” provides a standalone asset value, it only showcases one side of the part. There’s no visibility of liabilities. Proof of reserve without Proof of liabilities is only half the picture.
So let’s take it one step ahead and

— Sumit Gupta (CoinDCX) (@smtgpt) November 13, 2022

Read On: CoinDCX Proof of Reserve & Liabilities

Conclusion

With ease of accessibility in mind, the safety of the funds of the customers and transparency of the brand assets also comes into play. To support the same, CoinDCX will keep publishing its quarterly Proof of Reserves report along with token information and our flagship 7M framework to ensure education about the space goes hand in hand with the innovative features within the CoinDCX ecosystem. 

*Disclaimer: Assets/Net Worth shown is the value of the token holdings in the wallet addresses provided by the exchanges, on blockchains that Coin Gabbar supports. It is not meant to be an exhaustive, complete or comprehensive statement of the actual assets or reserves held by the exchange on behalf of its users or customers.