The FTX debacle, where one of the world's most popular and lauded crypto exchanges proved to be a massive smokescreen for an immeasurably mismanaged company, has every company executive putting on their Sunday best to try and appear legit. They are trying to prove that they are the most legit operation. They may be a Ponzi scheme but not us.
During a live Q&A Monday, the CEO said that they would be running a proof-of-reserves system. Vitalik Buterin is one of the main minds behind getting ETH over the hump from a Proof-of-Work system to a Proof-of-Stake system.
The proof-of-reserve function is a way to store and reveal reserves. This mathematical way to prove that your balance is included in your tree of balances is a very standard structure in the tech that is used to verify data stored on a kind of information tree. It is more confirmation from Zhao after he mentioned last week that FTX was falling apart and that he dumped his native token.
The Q&A states that the exchange would normally have a third-party auditor involved in this process, but they are busy auditing the FTX reserves. The snapshot of all their cold and hot wallet was taken on Nov. 10 in order to appear transparent during this new wave of criticism.
The trees are old. They were first patented in 1979 and are still one of the most important tech concepts that hold up the world of digital currency. How different Buterin's side project really is is still not known.
Buterin has remained silent while the newguinea pig offer has been made. The new feature will be available for a couple weeks.
The industry recovery fund was created by Zhao. The founder of TRON is involved. The B20 Summit in Indonesia was told that they need to set up an industry association worldwide.
It may be more difficult to find out which players are legitimate and worth being in an association than it is to find out which ones aren't. FTX is a big name right now because of how much the mighty have fallen, but there is room to show other exchanges aren't too far off. The people who once got celebrities to whisper " fortune favors the brave" in football fans' ears have seen a rise in withdrawals after claiming they accidentally sent $400 million in ether to another exchange. Critics were wondering if this exchange was used to make Gate.io appear more financially stable.
Mike Marszalek, the CEO of crypt.com, said during an interview that they were financially stable and didn't have any resources in with FTX. That didn't stop analysts and reporters from pointing out that a full fifth of the reserves are made up of a joke coin. Since Dogecoin and Shiba Inu have high market caps, they would want to have some for their heavy users.
Any of these exchanges can do anything they want to keep users on the platform.
Sam Bankman- Fried, the former CEO of FTX, is still trying to explain what happened to his properties, including FTX.
SBF and his firms seemed to have a lot of power before the entire roof came crashing down on them. The Financial Times reported Saturday that most of the firm's assets were the kind that were not so easily traded. There were hidden and poorly labeled accounts on the balance sheet that pointed to immense mismanagement.
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