- Changpeng Zho responded to Jesse Powell’s tweet on the pointlessness of PoR launched by Binance.
- Jesse P said PoR is pointless as it is devoid of liabilities.
- CZ responded that he would check it in the audit and would welcome more questions to be answered.
Binance CEO Changpeng Zhao responded to the questions raised by Kraken’s CEO Jesse Powell, who called Binance’s newly launched Proof-of-Reserves pointless, claiming that it is devoid of “proof-of-liabilities”. CZ tweeted that there is no negative balance involved and it would be verified in the audit.
On 25 November, Binance released the Proof-of-Reserves system, a new step towards the betterment of transparency over user funding and transactions.
The company asserted that though there will be users having negative asset balances, the net balance of the users would be non-negative:
As such, there will be individual users having negative asset balances. We are hence also working to implement ZK-SNARKs, which will be used to prove those users have enough other assets to cover the funds with collateral. This will prove that the total net balances (USD) of each user is non-negative.
In response to the announcement, Powell tweeted that it isn’t PoR but either “ignorance or intentional misrepresentation”. Further, he stated that the idea of transparency is all about revealing the actual holdings of the company and the crypto it owes to the customers:
However, CZ responded to the tweet positively stating that he is ready to answer more questions as he expects to move forward “together”.
In addition, to corroborate his ideas, he stated that he had answered the questions put forward by Brian A, the Coinbase CEO, and Jesse P, proving that he is ready to answer questions raised by the aspirants.