Binance’s Proof of Reserves gets a security boost thanks to Hacken’s discovery
Hacken researchers identified and helped fix a bug in Binance’s zkSNARK-based Proof of Reserves system related to BasePrice overflow.
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Over the last 12 months, a flood of reports, issued by Crypto Exchange Ranks (CER) and other prominent researchers, revealed massive volume manipulations by cryptocurrency exchanges. Consequently, it has become obvious that trade volume alone is not credible for rating trading platforms. Despite that, it is still the most common ranking factor, as, at face value, it is easy to understand, and it has been deeply entrenched in the minds of traders over the years. Several months ago CER introduced the Blockchain Balance Rating, as a way to rate crypto exchanges by the total balance of their BTC and ETH cold and hot wallets. At CER, we believe that this new metric will disrupt the status quo. Unlike the trade volume factor, the blockchain balance rating is impossible to inflate or fake, therefore, it should become the primary ranking factor for ranking cryptocurrency exchanges.
After collecting over 16 million wallet addresses and compiling all the pieces of information together, we received the first results. Here is what the list of Top-20 crypto exchanges by blockchain balance looks like (see fig 1).
Fig 1. Top-20 crypto exchanges by blockchain balance.
Recently, in the cooperation with Crystal and Etherscan, CER has analyzed and validated the wallet balances of several crypto exchanges. As a result, the first eight platforms have passed the Proof of Funds CERtification. Consequently, they have taken a massive step closer to providing real transparency to their customers, especially Codex.one, whom voluntarily disclosed their BTC and ETH wallets addresses to CER. Codex.one has made a significant move towards raising its credibility and user trust. And that is only beginning. The CER team will continue to analyze and monitor exchange wallet balances and promote the Blockchain Balance Rating as the only reliable metric for ranking crypto exchanges to date.
Curious minds may wonder which exchange may become the next to be CERtified? The answer is: any platform willing to contribute to its transparency and strategic growth perspective. Cryptocurrency exchange representatives may contact the CER team to learn more about all the benefits and to be guided through the CERtification process.
CER as a part of Hacken ecosystem provides an objective rating and certification of crypto exchanges.
Hacken is a cybersecurity ecosystem that ensures the safety of IT companies and digital environments. The company provides complex cybersecurity services and hosts bug bounty programs on HackenProof platform.