Altcoins Talks - Cryptocurrency Forum
Crypto Discussion Forum => Cryptocurrency discussions => Topic started by: Joseph Lee on May 05, 2024, 02:38:17 PM
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Now, before you suggest that I should Google it, I want to let you know that I have already done my online research and read some formal writings about Proof of Reserve (PoR) and its significance in the ecosystem of a crypto company. However, what I still haven't fully grasped is whether it has any impact on the price of coins (which, let's be honest, is what we all really care about).
To provide some context, my interest in this topic was piqued when I noticed bitget trending on Twitter today because their PoR has reportedly increased by around 176%, and many people there seem to be thrilled about it. I simply want to understand the underlying reason behind all this excitement. Does it have any influence on the tokens listed on the cryptocurrency exchange or the BGB token itself?
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I simply want to understand the underlying reason behind all this excitement. Does it have any influence on the tokens listed on the cryptocurrency exchange or the BGB token itself?
I think there is a big correlation between a solid and verifiable Proof of Reserve (PoR) and a coin/token price in the market. We have to remember that everything is about demand and supply...and demand can be influenced by a lot of factors. People like traders and investors would tend to buy and hodl digital assets that they think really represent value and can be here today and into the future...meaning there must be a business that is doing well in the market. And this can be true with your example above which is BGB of Bitget.
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I simply want to understand the underlying reason behind all this excitement. Does it have any influence on the tokens listed on the cryptocurrency exchange or the BGB token itself?
I think there is a big correlation between a solid and verifiable Proof of Reserve (PoR) and a coin/token price in the market. We have to remember that everything is about demand and supply...and demand can be influenced by a lot of factors. People like traders and investors would tend to buy and hodl digital assets that they think really represent value and can be here today and into the future...meaning there must be a business that is doing well in the market. And this can be true with your example above which is BGB of Bitget.
I agree with you, Tompluz, that if users could verify data, it would give them confidence to use a service. I also think that the CEX compliance with regulations might be a factor, and it has reflected in this growth metric since Jan.
(https://i.ibb.co/59X3c91/IMG-20240504-WA0010.jpg) (https://ibb.co/N3gqY3F)
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Now, before you suggest that I should Google it, I want to let you know that I have already done my online research and read some formal writings about Proof of Reserve (PoR) and its significance in the ecosystem of a crypto company. However, what I still haven't fully grasped is whether it has any impact on the price of coins (which, let's be honest, is what we all really care about).
To provide some context, my interest in this topic was piqued when I noticed bitget trending on Twitter today because their PoR has reportedly increased by around 176%, and many people there seem to be thrilled about it. I simply want to understand the underlying reason behind all this excitement. Does it have any influence on the tokens listed on the cryptocurrency exchange or the BGB token itself?
Proof of reserves is not something accurate and nobody should really trust it
Proof of reserves affects an exchange liability. However, as we can't double check it , Proof of reserves are worthless.
They arte worthless because they can prove they own X. But we can't see every individual account of this exchange and sum their values to know if the X matches.