In a rather surprising development for the overall industry, Strategy Founder Michael Saylor has called proof-of-reserving a “responsibility” in a recent statement. In fact, the Saylor discussed the concept but rejected it on that foundation and raised concerns for many in the industry.
Saylor had led its company, the former micro strategy, to be one of the most prominent bitcoin holders on the planet. In fact, the company has more than 580,000 BTC, with more that is apparently added this week. Still, his latest statements about revelations have many confused and are looking for even more answers.
Michael Saylor rejects proof-of-reserves in shocking statement
There are few people linked to Bitcoin and the Cryptocurrency sector that Michael Saylor is. The CEO has been a champion for the asset class for several years. In addition, his technology company has been one of Biggest buyers of the asset class, puts their money where their mouth is.
Yet he has recently drawn some criticism for a rather interesting position that he took on an important aspect of the sector itself. In fact, strategy founder Michael Saylor recently called proof-of-reserving a responsibility in a statement. Specifically, he said just as much when he rejected practice to reveal proof of holdings.
Also read: Saylor proposes 81 trillion dollars Bitcoin Reserve to reinvent US financial system
In addition, Saylor noted that these convertations are not an exact representation of a company’s financial health. However, this is facing common practice. After collapse of FTX, Proof-of-Reserve Audits became common to ensure that individuals could observe revealed funds.
Without it, they cannot verify a customer’s well -being, and thus they cannot verify their own means. He can encourage thinking twice before publishing the audit, but all investors should think twice before spending money in a company that refuses the disclosure.