Global crypto exchange, LBank, has recently announced that it will share its Merkle-tree proof-of-reserves, in view of recent concerns about the opaque nature of certain industry issues. LBank gave a public statement on November 9th stating that the exchange hopes to facilitate industry transparency and built a strong foundation of trust between exchanges and investors.
LBank stated in an announcement and Twitter post to their users that “We believe that it is crucial for tier-one cryptocurrency exchanges to publicly share their auditable Merkle tree proof of reserves or POF……This is an important step in building fundamental trust in the industry, and at the same time, it is also an important means to ensure the transparency of user assets.” LBank believes that taking this step will be crucial in helping investors regain trust in the market and hopes that more exchanges will take similar steps to help with this effort.
Merkle trees are used to help users easily verify specific transactions. It can reassure investors that the crypto holding is using public blockchain information. Crypto exchanges can provide accurate proof of held balances and strengthen the trust of users. Since recent events, many have taken to this path to avoid unnecessary speculation.
LBank believes that these measures will give users the transparency they need to get through recent turbulent times. “We can’t simply ask people to take our word for things, this change is a great thing that will give investors what they need and deserve. LBank values our relationship with our users more than anything. We hope this will tie us closer to our users and communities” an LBank representative stated.
LBank is one of the top crypto exchanges, established in 2015. It offers specialized financial derivatives, expert asset management services, and safe crypto trading to its users. The platform holds over 7 million users from more than 210 regions across the world. LBank is a cutting-edge growing platform that ensures the integrity of users’ funds and aims to contribute to the global adoption of cryptocurrencies.