Bank of America Says Crypto Exchanges' Proof of Reserves Have Too Many Shortcomings

, crypto trading platforms are rushing to show that clients’ assets are safe and not being used for speculation, but “proof of reserves, at least in the form they’ve been suggested, have too many shortcomings to inspire confidence,” Bank of America said in a research report Thursday.

. These are efficient data structures called “hash trees” that can be securely verified. They behave as a map of customers' funds and work even when reserves become complicated.Among the shortcomings, assets are shown at a fixed point in time, which gives opportunities for manipulation, such as borrowing assets right before the snapshot is taken, the note said.

Whilst not a shortcoming of proof of reserves, the crypto industry also needs a clear delineation between trading platforms and market makers, the report said.

BankofAmerica willcanny99 Chainlink will change it all

BankofAmerica willcanny99 BitMEX introducing realtime proof of reserves/customer holdings. The way forward for any exchange

BankofAmerica willcanny99 Is there anythinggg likee it!!

BankofAmerica willcanny99 Proof of Reserve in itself can be confusing as it is used ('proof of') for a technical matter.

BankofAmerica willcanny99 True, as they make snapshots every 6 months so far.

BankofAmerica willcanny99 SaveToNotion Thread

BankofAmerica willcanny99 Question: Does BankofAmerica has their own proofofreserves Answer: They don't have any, they never think about it, they don't dare to think about it Due to the fractional reserve system; they never have enough fiat to payback all customers. FTX SBF_FTX did the same thing

BankofAmerica willcanny99 I wonder what will happen to the traditional banking system if everyone attempts to withdraw their funds? ... leave it... Rhetorical question 😂😂😂

BankofAmerica willcanny99 Pretty sure BOA would be insolvent if a bank run occurred

BankofAmerica willcanny99 Has anyone been in a BOA lately? It’s like visiting the Stone Age 😂

BankofAmerica willcanny99 Proof of liability pls

BankofAmerica willcanny99 fu*ck bofa

BankofAmerica willcanny99 chainlink 👌🏽

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