Proof of reserves without liabilities mean nothing. Especially if reserves are being moved almost as soon as they are published?

My emotions about opening the books were pretty straight forward at the beginning.

Ok, not opening their books per say but making a first step in showing their reserves. At this point I know and you probably know as well that the numbers didn’t even come close to be called reserves. On top of that we still have no clue about liabilities on their sides.

Here are a couple of exchanges with self reported lists of reserves if you haven’t had the time.

Binance https://www.binance.com/en/feed/post/53973

Crypto com https://decrypt.co/114248/crypto-com-holds-20-of-its-reserves-in-shib?amp=1

They are a joke, no question. Also a pretty predictable move after FTX started to fall. What do I take from this? If they would have shown a more accurate picture with liabilities the panic would probably have spread even more than SBF caused.

Even in the instance that we would have those information, would they mean much when you see reports like these?

https://twitter.com/cz_binance/status/1591690261029130240?s=46&t=VCZ4nmzF1RYbkayxy7vJ6w

Ok, the context of this tweet does raise a point. But it makes this news a few days later even more weird.

https://beincrypto.com/binance-hot-water-moving-2-7b-out-proof-reserves-wallet/

It is well known that Binance doesn’t operate transparent at all. But to contradict themselves so openly (thanks to blockchain) doesn’t help their case at all and puts their reserves in an even worse spot.

So reserves really don’t give us any real context. I believe we need defi in a form that it’s easy accessible for everyone. Let’s help build a system everyone can trust instead of blindly follow the words and actions of CEXs.