Home Fear & Greed Pools Wallets Dictionary Advertise Facebook Twitter Telegram Reddit Youtube
Market Cap:
24h Vol:
Cryptocurrencies: 13285
Markets: 101961
CoinInsight360.com logo CoinInsight360.com logo
ENG
EST
RUS
TUR
DEU
CHI
KOR
ITA
USD
USD
AED
AFN
ALL
AMD
ANG
AOA
ARS
AUD
AWG
AZN
BAM
BBD
BDT
BGN
BHD
BIF
BMD
BND
BOB
BRL
BTN
BWP
BYN
BZD
CAD
CDF
CHF
CLF
CLP
CNH
CNY
COP
CRC
CUC
CUP
CVE
CZK
DJF
DKK
DOP
DZD
EGP
ERN
ETB
EUR
FJD
FKP
GBP
GEL
GHS
GIP
GMD
GNF
GTQ
GYD
HKD
HNL
HRK
HTG
HUF
IDR
ILS
IMP
INR
ISK
JMD
JOD
JPY
KES
KGS
KHR
KMF
KPW
KRW
KWD
KYD
KZT
LAK
LBP
LKR
LRD
LSL
LYD
MAD
MDL
MGA
MKD
MMK
MNT
MOP
MRU
MUR
MVR
MWK
MXN
MYR
MZN
NAD
NGN
NIO
NOK
NPR
NZD
OMR
PAB
PEN
PGK
PHP
PKR
PLN
PYG
QAR
RON
RSD
RUB
RWF
SAR
SBD
SCR
SDG
SEK
SGD
SHP
SLL
SRD
SSP
STD
STN
SVC
SYP
SZL
THB
TJS
TMT
TND
TOP
TRY
TTD
TWD
TZS
UAH
UGX
UYU
UZS
VES
VND
VUV
WST
ZAR
ZMW
ZWL
America's Social Casino

Market Cap
24h Vol
13285
Cryptocurrencies
62.63%
Bitcoin Share
Crypto Potato 2025-05-27 14:33:46

Michael Saylor Explains Why On-Chain Proof-of-Reserves Are a Bad Idea

Michael Saylor Explains Why On-Chain Proof-of-Reserves Are a Bad Idea

Michael Saylor, executive chair of Strategy, has warned that on-chain proof-of-reserves may create artificial intelligence-related security attacks. Speaking during a panel on the sidelines of the Bitcoin 2025 conference, Saylor said the practice is a “bad idea.” Security Risks and Incomplete Transparency When asked about the growing trend of institutions adopting the transparency measure, Saylor was opposed to it. “It actually dilutes the security of the issuer, the custodians, the exchanges and the investors. It’s not a good idea, it’s a bad idea,” he argued. The 60-year-old acknowledged that the industry has lessons to learn from the failures of FTX and Mt. Gox. However, he noted that proof-of-reserves is not the correct approach for companies to use. He also highlighted that no enterprise-level security professional would advise revealing all wallet addresses, a practice that is part of the process. He added that if AI were asked to evaluate the long-term risks of publicizing wallet structures, it would generate 50 pages of potential threats. The Bitcoin enthusiast emphasized that while transparency is important, proof-of-reserves only shows what a company owns and does not reflect what it owes, making it an incomplete measure of financial health. He suggested that instead of relying on the mechanism, institutions should focus on more holistic accountability solutions that provide a clearer picture of their financial stability. Would Strategy Adopt Proof-of-Reserves? When Blockware Solutions’ head analyst Mitchell Askew asked Saylor whether Strategy would consider using the verification method, the executive avoided giving a direct response. Proof-of-reserves gained popularity following the collapse of crypto exchanges like FTX and Mt. Gox, which left investors uncertain about whether exchanges had enough assets to cover liabilities. The disclosures are meant to show that institutions hold enough digital assets to back customer deposits. They are also used by entities such as crypto-tracking exchange-traded funds to confirm asset backing. Many crypto exchanges, such as Binance, Kraken, and Bitwise, have adopted them as a way to demonstrate solvency. The interview follows Strategy’s recent announcement that it had acquired an additional 4,020 BTC for nearly $430 million. The company now has 580,250 BTC and has recorded a BTC yield of 16.8% year-to-date in 2025, making it the largest corporate holder of the flagship cryptocurrency. Despite this, Google Finance data shows that the business intelligence firm’s stock closed at $369.51 on May 26, a 7.50% decrease in the last 24 hours. The post Michael Saylor Explains Why On-Chain Proof-of-Reserves Are a Bad Idea appeared first on CryptoPotato .

Most Read News

Moralis Money
Market Cap
24h Vol
62.63%
Bitcoin Share
808
Today News
Read the Disclaimer : All content provided herein our website, hyperlinked sites, associated applications, forums, blogs, social media accounts and other platforms (“Site”) is for your general information only, procured from third party sources. We make no warranties of any kind in relation to our content, including but not limited to accuracy and updatedness. No part of the content that we provide constitutes financial advice, legal advice or any other form of advice meant for your specific reliance for any purpose. Any use or reliance on our content is solely at your own risk and discretion. You should conduct your own research, review, analyse and verify our content before relying on them. Trading is a highly risky activity that can lead to major losses, please therefore consult your financial advisor before making any decision. No content on our Site is meant to be a solicitation or offer.