Original sourceCoinDesk
Summary
Gate announced the 'Proof of Security' (PoSEC) standard to measure whether an exchange's cold wallet assets can cover all customer balances in the event of a hack. Gate claims a cold wallet coverage ratio of 104.58%, with 88.26% of assets in cold wallets and 11.74% in hot wallets; latest reserves a…
Key points
- Provides an auditable framework for users to compare exchanges' cold wallet buffers rather than relying only on marketing claims.
- After major exchange hacks, how reserve transparency is measured will directly affect user trust in custodial platforms.
- Users holding exchange assets can ask platforms to explain cold-to-hot wallet ratios and understand that coverage does not equal sound internal controls.
- Reports use Binance's recent approximately $6.3 billion hack as background to explain why exchanges need to prove they can withstand similar shocks.
Editorial note
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