Bybit Posts December Proof-of-Reserves Showing Over-Collateralization Across Major Assets
Bybit published a December 17 proof-of-reserves (PoR) snapshot showing over-collateralization across major assets. Independent auditor Hacken verified reserve ratios above 100% for reported tokens, including BTC 105%, ETH 101%, XRP 101%, SOL 103%, USDT 102% and USDC 112%. Bybit uses Merkle Tree proofs so users can independently verify inclusion of funds. The exchange frames these disclosures as part of broader industry moves toward transparency after past exchange failures, stressing that >100% ratios provide liquidity buffers to meet withdrawals and reduce counterparty risk. The report also notes that PoR is one solvency indicator and should be considered alongside security measures (cold storage, compliance, insurance). For traders, the snapshot aims to reinforce market confidence and reduce short-term solvency concerns for the listed assets while not guaranteeing operational risk removal.
Neutral
The proof-of-reserves snapshot is likely to have a neutral-to-slightly-bullish effect on the mentioned assets. Positive elements: independently verified reserves above 100% reduce solvency concerns and may stabilize user confidence and reduce withdrawal-driven sell pressure, which can support prices short-term. The use of Merkle Tree proofs and an established auditor (Hacken) improves transparency credibility, which traders value. Limiting factors: PoR shows asset backing at a point in time and does not guarantee ongoing operational security, insurance coverage, or liquidity under extreme stress. Market-moving impact is therefore constrained; traders may view the update as risk-reducing but not a catalyst for major bullish moves absent other demand drivers. In the short term, expect reduced volatility tied to solvency fears for the listed tokens; in the longer term, repeated, consistent PoR updates could incrementally improve confidence and lower risk premia but will not replace fundamental market drivers like macro flows, on-chain activity, or regulatory news.