Jesse Powell claimed that Binance’s PoR is pointless and there are no details about negative balance accounts.
Jesse Powell is the CEO & founder of Kraken crypto exchange. Kraken is a popular crypto exchange, which is the 3rd biggest crypto platform after Binance & Coinbase, in terms of 24 hours global crypto trade volume on its platform.
On 26 November, Jesse took to Twitter to share his opinion on Binance’s Proof-of-reserves, which ensures the holdings of the clients’ funds safely.
Kraken CEO said that it is pointless because there is no proof/surety by any auditor to ensure that all the provided details about the reserves are ok without any negative balances.
Jesse also said that reserves’ records in BTC are not a good thing and it is also not enough to provide hash addresses corresponding to all account IDs because it is not enough to explain everything.
“This is simply “here’s a hash of your record in the BTC spreadsheet”. ok… but what’s the point? The whole point of this is to understand whether an exchange has more crypto in its custody than it owes to clients. Putting a hash on a row ID is worthless without everything else.”
Further, Kraken’s CEO suggested all the journalists & news media take time to understand the whole thing instead of misleading the people.
In the same Tweet thread, Kraken CEO also claimed that such efforts are changing the meaning of PoR, where some are redefining it & others are in confusion.
Binance CEO Changpeng Zhao responded to all of these questions from Kraken CEO and confirmed that a third-party auditor was engaged & he already talked about this thing several times
Zhao also said that no negative balances were added and also welcomed the new questions regarding this matter to improve in case anything happened wrong.