Do you know the role of Proof of Reserves in ensuring transparency in crypto exchanges?

Proof of Reserves (PoR) helps users to ensure whether their crypto is actually there in the exchanges, and not just numbers on a screen. It’s a way for exchanges to show they truly hold the assets they claim to hold.

Many well-known exchanges like Binance, Coinbase, and Kraken use PoR to be more transparent about how they manage customer funds.

When an exchange publishes Proof of Reserves, it reassures users that their money is safely stored and available for withdrawal whenever they need it, not being secretly used elsewhere.

These audits are usually done by independent third parties, which helps reduce the chances of manipulated or misleading data.

In simple terms, PoR builds trust. And in crypto, trust is everything.