CoinDCX Has More Than $129 Mn In Crypto Assets: Proof-of-Reserves Report

Crypto exchange CoinDCX has published a proof-of-reserves (POR) report after the collapse of the world’s second-largest crypto exchange, FTX, earlier this month left millions of crypto investors dead in the water.

According to the POR report, which has been published in partnership with blockchain analytics platform Nansen, CoinDCX’s net worth stands at approximately $129,866,391.36, as of Friday (November 25). Of this, it holds crypto assets worth $129,865,725.14 across various blockchains.

CoinDCX’s crypto assets are spread across several blockchains, including Binance, Ethereum, Cardano, and Ripple, among others. Over 52% of its assets are on the Binance blockchain, while 25% of its total assets are on Ethereum.

Speaking of token allocation, Bitcoin accounts for 13.13% of CoinDCX’s total assets, with Ethereum and, surprisingly, Shiba Inu Coin at 12% and 10%, completing the coins with a double-digit share of the total assets. Other major tokens included MATIC, ADA and XRP (Ripple’s native coin).

The Indian crypto exchange holds nearly $56 Mn in its native wallet, $68 Mn in Binance Spot & Earn and around $5.6 Mn in Polygon Stake. It has small holdings in LIDO, Convex, Shibaswap, Balancer and Stader.

“While the Indian crypto industry is undergoing regulatory clarity, we are focussed on self-compliance and follow stringent security measures that are in the best interests of our users and the community at large,” said CoinDCX in a blog post.

However, the proof-of-reserves report is only one side of the picture. To ensure a healthy Reserves to Liability (R2L) ratio, there needs to be a debt report as well. 

Incidentally, CoinDCX said it is working on the same and will publish it shortly.

“We are working with reputed audit firms to certify our financial health and will publish this shortly,” CoinDCX said in the blog post. The crypto exchange will also publish monthly updates on the R2L ratio.

CoinDCX’s crypto assets report comes after multiple Indian crypto exchanges, including CoinDCX, sent emails to investors and traders reassuring them that they had sufficient funds to match the customers’ funds and investments.

It is pertinent to mention that in the case of FTX, it was apparent that most of the assets held by the crypto exchange were in its native token, which it had leveraged to take on more debt. That resulted in a hole in its balance sheets, and once the news was out, the exchange collapsed.

FTX held $6 Bn in its native token, the FTT, which was devalued overnight, leaving the crypto exchange with no chance but to file for bankruptcy. 

According to media reports, FTX owes creditors around $3 Bn. In all, it held only about $900 Mn in assets against a total liability of $9 Bn, causing a collapse.