Bybit joins trend, releases Merkle Tree-verified proof of reserves
The Dubai-based exchange released its reserve wallet addresses shortly after the FTX fiasco began, and now it launched a verification system for users to track its holdings. The cryptocurrency exchange Bybit joins the parade of exchanges in the industry pushing for transparency post the FTX catastrophe. On Dec. 12, it announced that it has launched a Merkle Tree-based proof-of-reserve system. The new transparency initiative allows its users to directly verify Bybit’s holdings, along with their personal assets deposited into the exchange. The feature is available to all users with funds in both trading accounts and funding accounts, which also includes crypto holdings in Bybit Earn products. Additionally, the new feature enables verification of Bybit’s wallet ownership, that assets are held with a 1:1 ratio. Ben Zhou, the co-founder and CEO of Bybit, commented on the usage of Merkle Trees in liquidity verification: “The cryptographic solution brings forth a crypto-native, trustless mo...