Binance was one of the first crypto exchanges to reveal their proof-of-reserves, and it wasn’t long before numerous other crypto firms followed suit. However, these earliest proof-of-reserves were nothing more than the balances of the cold wallets belonging to the exchanges.

Jesse Powell, CEO of Kraken, critiqued the move by saying, “I’m sorry but no. This is not PoR. This is either ignorance or intentional misrepresentation.”

The CEO further went on to state that the whole point of coming out transparent was to understand whether a crypto exchange had more crypto in its custody than what it owed to its clients.

In response to Jesse’s remark, CZ noted that, it was “in crypto” that exchange owners pointed out at each other publicly and thought these to be gestures of good faith.