‘Proof of Keys’ is coming, but what is it?

[PRIBO247]

Notable crypto enthusiast Trace Mayer has been
recently advocating the importance of a “Proof of Keys”
celebration. The event will take place on January 3,
2019.

Proof of Keys event
Trace Mayer is now promoting a crypto ownership
awareness event called “Proof of Keys “. In the event,
cryptocurrency holders are urged to remove their
crypto assets from exchanges and other third parties in
an effort to prove solvency.
The idea is that if the exchanges actually hold
customers’ crypto assets (which they claim to store for
customers after deposit), then all customers should
essentially be able to remove their assets from those
third parties at any point. Mayer described the details
and reasoning on his website.

“By demanding and taking
possession of their assets,
individuals will learn real
fast with blockchain proof
whether they are part of the
elite HODLers or not. Proof
of Keys is the annual
HODLer initiation.”

Popular crypto YouTuber Crypt0 recently interviewed
Mayer, talking largely about the Proof of Keys event.
Mayer mentioned several points of importance for the
event. He described that crypto holders should know
how to store and protect their crypto private keys, and
effectively transfer them into their own possession at
will.
Mayer also stated the issue of third-party solvency for
crypto assets. After a year of solvency doubt regarding
Tether (USDT) and others, Mayer urged the crypto
community to use this event to find out which crypto
exchanges (and other third parties) can prove they
have the funds they claim to store. “This is a fight over
your monetary sovereignty,” Mayer said.
Many exchange hacks and casualties have occurred
since bitcoin’s inception, showing the importance of
skepticism, as well as the personal storage of investor
private keys.

“People kind of need to
understand the importance
of proof of keys and proof of
work. And so why not do it
on the genesis block day
[January 3]. Why not turn
this into an annual
celebration that we can do
as a community, and just
demand proof of the keys.”

The event encourages anyone who holds crypto assets
on exchanges, gambling websites, or other third
parties, to withdraw all those assets to private
individual storage. “You can always send them back,
but just prove that they’ve got them,” Mayer said.
Additionally, Mayer explained this event to help test the
blockchain network consensus as well. Withdrawing
assets, in theory, would prove the validity of different
asset chains.

Doubts against the event
There could be a potential problem with this event,
however. Exchanges like Binance for example, do not
hold all customer assets on the exchange at one point.
They store an amount of those funds in cold storage, to
protect customers.
If everyone wanted to withdraw all funds in a short
period of time, it would likely create significant traffic
while waiting for the exchange to transfer those funds
and then allow customers to withdraw them.
Back when 1Broker was shut down by the FBI a few
months ago, Crypto traders flocked to 1Broker’s
sister-site 1Fox exchange to withdraw all their bitcoin
in fear of a related shutdown. This caused hours of
delays in asset withdrawls.
Actively trading crypto assets can also often require an
amount of funds to remain on exchanges. This event in
theory could basically make trading inoperable until all
the transfers were sorted out and sent back.

source: https://cryptoinsider.com/