Binance CEO Changpeng Zhao responded to the questions raised by Kraken’s CEO Jesse Powell, who called Binance’s newly launched Proof-of-Reserves pointless, claiming that it is devoid of “proof-of-liabilities”. CZ tweeted that there is no negative balance involved and it would be verified in the audit.
On 25 November, Binance released the Proof-of-Reserves system, a new step towards the betterment of transparency over user funding and transactions.
The company asserted that though there will be users having negative asset balances, the net balance of the users would be non-negative:
In response to the announcement, Powell tweeted that it isn’t PoR but either “ignorance or intentional misrepresentation”. Further, he stated that the idea of transparency is all about revealing the actual holdings of the company and the crypto it owes to the customers:
However, CZ responded to the tweet positively stating that he is ready to answer more questions as he expects to move forward “together”.
In addition, to corroborate his ideas, he stated that he had answered the questions put forward by Brian A, the Coinbase (NASDAQ:COIN) CEO, and Jesse P, proving that he is ready to answer questions raised by the aspirants.
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Source: Cryptocurrency - investing.com
