Phemex Releases Merkle-tree Proof-of-Reserves
Phemex has always sought to promote a more robust and transparent crypto ecosystem for all. Today, we’re happy to announce the official publication of our Merkle-tree Proof-of-Reserves. This new feature allows all Phemex users to verify that their funds are indeed safe in our reserves. We take a unique approach that allows you to trust in yourself and in code rather than blindly rely on a third-party auditor.
Simply head over to our proof-of-reserves tool and input your Hashed Client ID, which can be found on your Phemex dashboard. You’ll then be able to check your balances for 5 assets – BTC, ETH, USDT, USDC, and USD in trading for a specific snapshot time. These 5 assets represent the vast majority of our users’ balances, and more token balances will be added in the near future. After confirming your balance, you can proceed to review the Merkle-tree proofs to confirm that your assets are recorded within our system.
In addition to the Merkle-tree, Phemex is also providing proof-of-solvency by making our assets and liabilities for these five coins available to all. Freely download our liabilities data to see the total balance of these five assets that users have on Phemex. Phemex has not borrowed funds or have any outstanding corporate loans. We are so confident in this claim that if anyone proves that we owe them, we are happy to repay that proved corporate loan amount 10 times over. On the proof-of-reserve page, we have published a portion of our cold wallet addresses. We encourage all users to regularly verify that Phemex’s assets do indeed cover liabilities.
Given recent events in our industry, the crypto community has understandably become more apprehensive in regards to centralized exchanges. Phemex experienced this first hand as we have seen a recent decrease in assets under management and trading volume. Nevertheless, we believe this to be an opportunity to showcase full sincerity and to lead the industry into greater transparency. That’s why as we publish our Proof-of-Reserves, we openly reveal our platform liabilities and the assets in a portion of our cold wallets.
Users might note that our assets under management may be low compared to some more prominent exchanges. This is due to several factors. The first is that Phemex began as a crypto derivatives exchange, and we just recently started to place greater development priority on our spot trading business. Furthermore, both our recent AUM and trading volume declines can be partly attributed to several large institutional clients withdrawing their funds because we had previously not published proof-of-reserves. Today, by being the first exchange to publish proof-of-reserves and proof-of-solvency using this unique, self-proving approach, we hope all our users can continue their crypto journey on Phemex with confidence and peace of mind. Regardless of whether you’re an institutional client, advanced trader, or crypto newcomer, let’s all work together to rebuild a healthier, better crypto ecosystem for the long term.
For further guidance, check out our two Help Center articles – What is the Phemex Proof-of-Reserves Tool and How do I use the Phemex Proof-of-Reserve tool?
Note: Only user main accounts can see Client Hashed ID and check Proof-of-Reserves. All sub-account assets have been aggregated to the main account (trading bonuses are not counted).