Bybit crypto exchange unveiled a verification system that employs Merkle trees to ensure its users that the crypto exchange platform holds all of their assets in its reserves.
The feature enables customers to confirm that the company is in possession of 100% of their crypto funds.
Customers of Bybit can now verify the platform’s reserve ratio with the help of the Merkle Tree-based system, according to the announcement.
This allows users to ensure that the crypto exchange has enough assets to back up the balances they hold. Bybit’s current reserve ratio is 1:1, as stated on Saturday.
This is the most recent measure taken by the crypto exchange to ensure the safety of its users following the FTX collapse.
Furthermore, Bybit has shared the wallet addresses for its reserves, and these can be checked on the Nansen dashboard.
Bybit has recently launched a system for its users to verify its holdings in the wake of the FTX bankruptcy.
In a similar vein, other cryptocurrency exchanges such as Binance and Crypto.com have issued their own proof-of-reserves statements.
This transparency drive has come in response to the large-scale withdrawals by concerned customers regarding the financial stability of crypto platforms.
Nevertheless, these reports have caused some platforms to come under the scanner, with Gate.io and Huobi being accused of showing borrowed money as part of their reserves in their respective audits.
