The need for Proof Of Reserve (PoR) & wallet address has become a necessity for users to know as we can not rely on the exchanges. We keep our funds in an exchange wallet because we trust the platform and if those funds are used by the exchange to earn money then it is not a fair practice. The cryptocurrency market is not regulated but it doesn't mean that users do not have the option to ask for transparency and how their funds are used. Any exchange should not do it because not a fair practice and this way exchanges are misused in the funds deposited by the users.
WazirX is an Indian exchange based out in India and it was acquired by binance. They have finally shared their proof of reserves today and this is the second exchange in India that has shared this information after the ftx crash. Sometimes even the market looks good but there is a lot happening behind the scene and in the scenario exchanges are part of the business.
Self-custody is highly recommended but we can not depend on exchanges to manage our funds rather we should keep it with us because we are the best person to make it safe. There is no point in keeping the funds in the exchange wallet because you never know when your money will be used by them and we are not even aware of it.
It seems like the initiative has created some hype in the market and trying to gain the trust of the community. This is a business of trust because money is involved and if an exchange is known for following unfair practices then properly users will start by coating the exchange are you will making a distance from the platform. If exchanges shares transparent information then it will be bigger and that is the strategy that needs to be followed.
I have purchased a ledger wallet for me so that I can keep my crypto with me and hive is not the concern because this is already in a safe place. I need not spend any time or money to make it more secure. I already have all the keys with me in a safe place and my plan is to move my other crypto including Bitcoin and ethereum to my hardware wallet. There are many exchanges in India and their still operating when the government has applied higher taxes. Even the community is expecting in reduction of tax this year but seems like this is not going to be an easy game in India. There are multiple reasons behind the scenes and if someone wants to learn then there is no excuse to provide and learning can be achieved.
I hope to see more exchanges in India that can forward and share this information in the open domain. India is already on the list of countries that are non-familiar with countries for crypto so in this situation and it is imperative to educate people about it.
Thank you
Thank you