Transparency – The currency of trust at CoinDCX

CoinDCX publishes Proof of Reserves Report 

Last week we published a blog and hosted an open house with Sumit where we highlighted our robust risk management and consumer protection policies.

Ever since FTX’s unfortunate turn of events, transparency and consumer protection has taken precedence over everything. The crypto ecosystem is still small but growing faster than any other industry out there. At CoinDCX, we prioritize transparency and proper risk management and believe this is the key to the ecosystem’s mainstream adoption. While the Indian crypto industry is undergoing regulatory clarity, we are focussed on self compliance and follow stringent security measures that are in the best interests of our users and the community at large. 

Over the past few days,  the CoinDCX team has been in war rooms, keeping an eye on community sentiments, talking to industry experts- all of this to make transparency whole. Regarding Proof of Reserves, here is what Sumit had to say:

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

With that being said, earlier we launched our on-chain Proof Of Reserves in partnership with Nansen. Due to an API issue at Nansen’s end, they were not able to pull our users’ funds balance on Binance wallets. This meant that the POR numbers displayed by Nansen were incomplete- funds on Binance wallets missing.

Since then, our team has been working hard to find an alternative partner to ensure our POR is displayed with complete transparency. We have partnered with Coin Gabbar who is one of the leading information & research providers in space to publish our POR with complete transparency and wallet addresses.

CoinDCX on-chain balances & wallet addresses in partnership with Coin Gabbar: 

https://www.coingabbar.com/en/proof-of-reserve/coindcx#

However, like Sumit has said before, POR is just one part of the picture. There needs to be an equal visibility of liability to ensure a healthy Reserves to Liability (R2L) ratio. We are working with reputed audit firms to certify our financial health and will publish this shortly, stay tuned. In addition, our POR data will be available online, and we plan to post monthly updates on our R2L ratio, to give our customers complete confidence in the health of our business and the safety of their investments.

We continue to support the Indian crypto industry in a responsible manner, be self compliant and aim to keep our customers informed and protected. 

*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.

*Please note that the dashboard might take upto 30 seconds to load the entire data.