Bybit, the third-largest crypto exchange in the world by trading volume, recently published a press release in which it said that it would expand its proof-of-reserves audit. The expanded audit will now grant insight into an industry-leading 32 cryptocurrencies, according to the exchange.
The move was made to further demonstrate the platform’s dedication to the security, transparency, and safety of the clients’ funds.
Bybit audit confirms backing of all 32 cryptocurrencies
The audits of crypto exchanges’ backing have grown to be quite rigorous over the years due to a number of incidents involving hacking attacks, asset mismanagement, failures of seemingly established firms, and alike. As a result, assets are required to be fully backed, and auditors have been rather serious in confirming that this is, in fact, the case.
Bybit’s audit is no different, and it affirms that all assets are fully backed, ranging from 100% to 124% in some cases, by the exchange’s meticulously managed wallets, as the press release says.
The platform’s move comes in response to an increase in demand for transparency in the crypto industry. The demand has been growing constantly for years, but it saw a particular surge following several incidents, such as the bankruptcy of FTX, which took place last November.
Bybit’s response was to comply and expand its proof-of-reserves audit, which allowed customers to rest assured that their assets were adequately backed and that their safety was ensured. The audit confirmed the backing of each of the 32 cryptocurrencies, all of which were carefully surveyed. The auditors discovered that they were fully collateralized.
The platform’s commitment to transparency was further confirmed by its high rankings on trust scores. One example comes from CoinGecko’s Trust Score, which gave it a perfect 10/10 upon inspection. The same can be said for the 2023 CCData Crypto Exchange Benchmark Report, which gave the exchange the AA rating — the highest that it can give.As such, Bybit is considered to be one of the leaders when it comes to the industry’s best practices.
Bybit believes in trust through verification, says CEO
The exchange’s co-founder and CEO, Ben Zhou, commented on the proof-of-reserves expansion, stating that Bybit’s proactive approach to transparency via regular audits reflects its core belief in trust through verification. He added,
In a dynamic landscape like crypto, proof-of-reserves are critical. They empower our users with confidence, knowing that their investments are secure and managed with the utmost integrity.
The exchange has a complex, custom-designed system that includes cold, warm, and hot wallets, all of which work together to ensure optimal security. In addition to that, they also offer convenience in reaching the funds as required.
Apart from that, the leading crypto exchange also collaborates with highly-reputable third-party custodians, such as Copper and Fireblocks. Their contributions also allow the exchange to provide high security, which is necessary in order to stay in the lead of the ever-evolving crypto exchange market.
This is not the first time that Bybit expanded its proof-of-reserves this year. Earlier, in April 2023, the exchange announced the strengthening of its proof-of-reserves to include 20 tokens.
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