Bitget, proudly announces its achievement of a total proof-of-reserves ratio of 223%. The exchange reveals that it currently holds $1.44 billion in reserves across 31 different crypto assets. Notably, Bitcoin, Ether, and USD Coin exhibit reserve ratios of 454%, 135%, 171%, and 2,604%, respectively.
This news was reported in an exclusive interview with Cointelegraph. Bitget executives confidently assert that the exchange operates independently without relying on debt or user funds for its transactions or investments. The company takes pride in its debt-free status, highlighting the following statement:
“Bitget holds no outstanding debts or liabilities and is not listed as a creditor for any recently bankrupt companies.”
High Collateral and User Protection Fund
Addressing inquiries about the substantial collateral for specific coins, Bitget clarifies that the funds are generated from transaction fees, investment returns, and acquisitions. The exchange does not have external insurance for its users; instead, it operates a robust $300 million User Protection Fund.
Executives assert that this fund surpasses the effectiveness of third-party insurance. This further enabled them to efficiently cover users’ assets without relying on external bureaucracy or policy changes.
Although not currently a regulatory requirement, Bitget aims to establish more partnerships with third-party auditors to conduct thorough examinations of its assets and reserves. The exchange diligently updates its proof-of-reserves figures on a monthly basis, demonstrating its commitment to transparency.
Experts’ Perspectives on Proof-of-Reserves
The practice of providing proof-of-reserves has gained popularity in the aftermath of cryptocurrency exchange FTX’s collapse. However, experts caution against relying solely on this measure.
Jack Graves, a professor of law at Syracuse University warned about this. He said that verifying the amount of assets pledged as collateral is challenging without access to an exchange’s financial services, books, and records. Simply auditing on-chain assets does not provide the complete picture.