The crypto and the XRP community closely follow Ripple’s case against the SEC to spot any potential price catalyst for XRP.
In July, a judge stated that XRP is not a security per se, causing the crypto-asset to experience massive price swings throughout the following month. This decision led many exchanges to re-list the cryptocurrency back on their platforms.
One leading crypto exchange that sees a lot of XRP trading volume is OKX, which publicly shared its proof of reserves a few weeks ago across all of its digital assets. Here’s how much XRP OKX has in its reserves:
- OKX user asset holdings: 173,284,313
- OKX wallet assets: 178,401,336
- Exchange (total): 178,401,336
This means OKX has an extra 3% of XRP in its exchange. Below is the total reserves by asset held by the exchange:
As noticed, some assets are held by users’ third-party custodians. Therefore, if you have assets there and want to check those balances by yourself, you may want to do it through a third party directly.
Why Proof of Reserves are Important
Following the FTX meltdown, the crypto community expressed its concern for proper reserves audits and total transparency in cryptocurrency exchanges. Proof of Reserves (PoR) became a popular model following the aftermath as they implemented more layers of accountability in the crypto world.
PoR verifies that a crypto platform does indeed have 1:1 backing across all the crypto assets it holds on behalf of customers. This allows users to verify that the exchange is solvent or that all numbers match correctly with the company’s statements.
Proof of Reserves is done by a third party —an auditor who creates a snapshot of the company’s balances, including on-chain wallets, to show transparent proof. This is especially important, as companies by themselves can provide misleading statements of their reserves.
