India’s prominent crypto exchange WazirX has published its proof-of-reserves with 90% of user assets stored in Binance-based wallets, with the remaining 10% held in both hot and cold storage wallets.
This demonstrates a reserves-to-liability ratio of greater than 1:1 and is equivalent to approximately $256.5 million and $28.5 million, respectively.
According to the report, WazirX has nearly $285 million in total user assets displayed in the Tether stablecoin at the time of writing.
Using CoinGabbar, a third-party crypto asset tracking platform to release its proof of reserves, the trading firm cites the latest action as an act of transparency.
According to the trading platform, it has the highest amount of reserves among all the crypto exchanges in India.
“We are not only India’s largest crypto exchange by volume but also India’s largest crypto exchange by reserves.”
Drilling deeper, Shiba Inu [SHIB] account for the company’s largest holding, comprising 19 percent of all reserves. 6.09 trillion SHIB tokens, worth $54.2 million, are currently held by WazirX.
Bitcoin and Ethereum come after it. The value of the firm’s 1,356 Bitcoin is $23.6 million. The PoR said that it holds 20,057 Ethereum tokens worth $26.6 million.
Digital asset service providers across the globe have rushed to publicize their reserve funds following the mass hysteria and chaos sparked by the FTX liquidity and bankruptcy scandal.
But it was Binance that paved the way for others to disclose their PoR. Founder Changpeng Zhao a.k.a CZ announced that the largest crypto exchange in the world by trading volume would start publishing the Merkle-tree proof of reserve.
It’s interesting to note that WazirX and Binance got into a spat about ownership control after the latter claimed last August that it didn’t own the Indian platform despite revealing the acquisition two and a half years prior.
Binance And WazirX Ownership Issue
In a blog post published at the end of 2019, Binance announced the acquisition of WazirX. The official blog article included the Binance executive’s excitement for the transaction along with a picture of Zhao and the WazirX founders.
However later in a series of tweets, CZ said that the firm has been “trying to conclude the deal for the past few years,” but hasn’t completed the transaction yet citing “a few issues” that he declined to elaborate on.
The clarification came after India’s Enforcement Directorate froze WazirX’s assets worth over $8 million, citing a suspected violation of foreign exchange rule.