WazirX is the second major Indian crypto exchange after CoinDCX to publish its Proof of Reserves, according to a press release by the company. The company has also made its list of wallet addresses and exchanges public besides an independent report on its proof of reserves. The report offers a detailed description of WazirX’s assets which are updated in real-time. The exchange also claimed that its reserves-to-liabilities ratio is more than 1:1 which suggests that it can honour every request in case every user makes a withdrawal request. Rajagopal Menon, Vice President, WazirX, said in a statement that the exchange is looking to provide its users with the “trust and security they deserve”. Understanding Proof of Reserves: It is an independent audit conducted by a third party which ensures that an entity holds the assets it claims to on behalf of its clients. Why it matters: WazirX is one of India's largest crypto exchanges and its efforts to foster transparency is a good step to instil trust in the crypto ecosystem. The erosion of trust has been severe in the aftermath of the collapse of FTX which was one of the biggest exchanges in the world. The efforts to make their balance sheet more transparent are likely to reassure WazirX’s investors over the safety of their funds. The company claims that it has the highest amount of reserves among all crypto exchanges in India but it cannot be verified independently. What does the report reveal: The exchange has nearly $295 million…
