3 ms·

This is pretty cool [0] is the Kraken page, at [1] someone collected both background information, links, and PoR entities, and finally a 2014 post of Kraken’s f

This is pretty cool [0] is the Kraken page, at [1] someone collected both background information, links, and PoR entities, and finally a 2014 post of Kraken’s first PoR audit [2]. [0] https://www.kraken.com/proof-of-reserves https://www.kraken.com/proof-of-reserves [1] https://niccarter.info/proof-of-reserves/ https://niccarter.info/proof-of-reserves/ [2] https://bitcointalk.org/index.php?topic=528432.0 https://bitcointalk.org/index.php?topic=528432.0 Edit: And here is CZ of Binance claiming they’ll do it soon as well: https://nitter.kavin.rocks/cz_binance/status/1590055819416330240 https://nitter.kavin.rocks/cz_binance/status/159005581941633...

Yizahi 4y ago
Have you read Kraken's own page about that? Here is a quote: "The results of our most recent audit were once again verified by top-25 global accounting firm, Armanino LLP. " (1) So from this I read that Kraken has done audit themselves and then some other firm has verified it. This (if true) is called attestation, and not audit. Attestations are an empty claim with no proof in the tokenbro industry. And second issue I see (directly related to the first) - they list some tokens they are auditing. Auditing on chain. But what if the Kraken company has a completely off the chain liabilities? Like a contract where they loan money/btc to some shady person and get some worthless tokens as a collateral in return. You can't see this on chain, only a real independent audit can uncover such things. (1) https://blog.kraken.com/post/15002/kraken-proof-of-reserves-audit-expands-to-include-five-new-assets/ https://blog.kraken.com/post/15002/kraken-proof-of-reserves-...
- Semaphor 4y ago
  Unless I’m misunderstanding things (as a non-finance person that is very possible), this is not a normal audit, but instead proof, that they actually have the customer tokens they claim to have.
  - schlauerfox 4y ago
    If you have 10 bitcoin and lend them to me by giving me the keys and report that wallet as your bitcoin, and in exchange for lending me those, I give you 10 WorthlessCoin as collateral, you now could say you have 20 bitcoin worth of holdings on chain, if you were playing loose with accounting rules. But in the end you might have 0 of anything if I go bust (and lost the bitcoin you lent me first) because of our off chain contract/loan. Dangerous waters.

Yizahi 4y ago

Have you read Kraken's own page about that? Here is a quote: "The results of our most recent audit were once again verified by top-25 global accounting firm, Armanino LLP. " (1) So from this I read that Kraken has done audit themselves and then some other firm has verified it. This (if true) is called attestation, and not audit. Attestations are an empty claim with no proof in the tokenbro industry. And second issue I see (directly related to the first) - they list some tokens they are auditing. Auditing on chain. But what if the Kraken company has a completely off the chain liabilities? Like a contract where they loan money/btc to some shady person and get some worthless tokens as a collateral in return. You can't see this on chain, only a real independent audit can uncover such things. (1) https://blog.kraken.com/post/15002/kraken-proof-of-reserves-audit-expands-to-include-five-new-assets/ https://blog.kraken.com/post/15002/kraken-proof-of-reserves-...

Semaphor 4y ago
Unless I’m misunderstanding things (as a non-finance person that is very possible), this is not a normal audit, but instead proof, that they actually have the customer tokens they claim to have.
- schlauerfox 4y ago
  If you have 10 bitcoin and lend them to me by giving me the keys and report that wallet as your bitcoin, and in exchange for lending me those, I give you 10 WorthlessCoin as collateral, you now could say you have 20 bitcoin worth of holdings on chain, if you were playing loose with accounting rules. But in the end you might have 0 of anything if I go bust (and lost the bitcoin you lent me first) because of our off chain contract/loan. Dangerous waters.