Proof of Reserve Ratio Fuels CEX Growth

After the recent Bitcoin halving event, the deep in the prices of stable coins has been a trending theme. In this context it is only natural that people will want to know to what extent there assets are secured while operating with any CEX.

Recently though, I saw a tweet by Gracy Chen that shows a chart that highlights Bitget's growth in user assets over the past four months (Jan - April 2024). The chart shows that BTC, USDT and ETH on Bitget reserve surged 37%, 51%, and 46% respectively.

Because there was a simultaneous 25% growth in new users during the same period, I can infer that the growth in user assets can be seen in part, as a sign that users trust Bitget with their crypto investments. They are essentially trusting the exchange to hold those assets safely.

There are a number of reasons why users might trust a CEX. As for Bitget, I believe it is a well-established exchange with a good reputation and has been compliant with a number of regulations, which gives users some assurance that their assets are safe. Additionally, Bitget has a number of security features in place to protect user assets, such as two-factor authentication and cold storage.

Overall, the growth in user assets on Bitget is a positive sign for the exchange and If the past is an indication of the future, I can safely assume that the trajectory is upward as long as they continue on the same path!