Gate.io Reports $8.688 Billion in Reserves With 118.49% Reserve Ratio
(2 hours ago) · 1 source · Summarized by CryptoBipto
Cryptocurrency exchange Gate.io has published its latest proof of reserves report, stating total reserves of $8.688 billion. The exchange claims an overall reserve ratio of 118.49%, meaning it says it holds more assets than user deposits.
WHY IT MATTERS
When you deposit cryptocurrency on an exchange, the exchange holds your assets on your behalf, similar to how a bank holds your money. After the collapse of the FTX exchange in 2022, where customer funds turned out to be missing, many exchanges began publishing 'proof of reserves' reports to show they actually have enough assets to cover what customers have deposited. A reserve ratio of 118.49% means Gate.io claims to hold about 18% more in assets than what users have deposited. However, these reports are not the same as a full financial audit, and their reliability depends on how thoroughly they are verified by independent parties.
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- beincrypto.com
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