Cryptocurrency exchange Bybit stands for transparency of assets in wallets
Cryptocurrency exchange Bybit officially disclosed information about the number of funds in the wallets of its users. The total amount of assets is about $1.9 billion. In order to obtain such data, the site attracted the analytical company, Nansen.
Bitcoin exchange head Ben Zhou noted that the company is working on new solutions that will allow participants to view and monitor wallet balances at the site and other storage facilities. At the same time, Bybit promises 1:1 reserves for all users, as well as fast processing of assets that are withdrawn from the exchange.
According to the information, exchange members most often store their assets in USDT stablecoins, they account for a share of almost 39% of the total amount of funds. The second most popular is bitcoin, its share is 19.3%, followed by UDTC with almost 17%.Bybit decided to release such data amid the scandal around the cryptocurrency exchange FTX, from which about $3 billion was stolen. Other exchanges, including Huobi, Binance, and others, were also in favor of the transparency initiative. For example, the latter also reported on its cryptocurrency reserves. According to this information, there are 475,000 BTC, 4.8 million Etherium, 601 million USDC, and other currencies in the wallets of the platform’s users. The analysis took into account both hot and cold wallets. In addition, the head of Binance Changpeng Zhao advocates transparency for participants in the crypto industry and encourages other exchanges to make their reserves public.
Last fall Bybit began trading with PoW fork Ethereum paired with USDT. Tokens are credited to the spot accounts of exchange members at a ratio of 1 to 1, and they receive a special notification. It started trading at the $5 level, maxed out at $40, and went into an equilibrium range of $23 to $35. Bybit also switched to a new PoS consensus algorithm, which resulted in a number of ERC-721 tokens being frozen, with the subsequent exclusion of transactions with them. The process for the exchange was quite complicated and lengthy, and all users were warned about possible transition scenarios in advance. In general, Bybit functionality was not affected, and there were no severe problems. The exchange was not the first to switch to the new algorithm, a number of exchanges are already working in the new format, and the rest are preparing the basis for the transition. Thus, participants in the crypto industry want to increase the level of protection for assets and speed up transaction processing.