Bitget’s Impressive Milestone: Reserves Surpass $1.44 Billion, Asserting Debt-Free Status

Bitget, a prominent cryptocurrency exchange, has proudly announced its impressive proof-of-reserves ratio of 223%. In a recent statement on July 13, Bitget disclosed that it currently holds a total reserve of $1.44 billion, spread across an extensive portfolio of 31 different crypto assets. Notably, the reserve ratios for Bitcoin, USDT, ETH, and USDC are reported at 454%, 135%, 171%, and an astonishing 2,604%, respectively.

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Executives from Bitget emphasized the exchange’s commitment to operating independently without relying on debt or users’ funds for transactions or investments. In fact, the company took pride in highlighting that it is completely debt-free and has no outstanding liabilities. Furthermore, Bitget is not listed as a creditor for any recently bankrupt companies, establishing its financial stability.

When questioned about the significant collateralization of certain coins, Bitget clarified that the funds originate from profits generated through transaction fees, as well as returns from strategic investments and acquisitions. Unlike relying on external insurance, the exchange operates a robust User Protection Fund worth $300 million, which the executives claim functions even more effectively than third-party insurance. This fund ensures the efficient coverage of users’ assets, minimizing dependence on external bureaucracy or policy changes.

Although not yet a mandatory requirement, Bitget aims to further enhance transparency by increasing partnerships with third-party auditors to conduct regular examinations of its assets and reserves. As part of its commitment to openness, the exchange updates its proof-of-reserves data on a monthly basis.

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While proof-of-reserves has gained popularity as a means of disseminating information regarding exchange assets, experts have cautioned against solely relying on this metric. Jack Graves, a law professor at Syracuse University, has previously emphasized the complexity of determining how much pledged collateral an exchange possesses, as it requires access to the institution’s financial services, books, and records. Consequently, Bitget’s proactive approach in seeking third-party auditors demonstrates its commitment to maintaining trust and accountability within the cryptocurrency industry.

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