Gate Launches PoSEC, Reports 104.58% Cold-Storage Coverage
Gate has launched Proof of Security (PoSEC), a framework designed to assess exchange security beyond proof of reserves by examining asset storage and coverage under extreme-risk scenarios. Gate says it is the first digital-asset exchange to introduce such a system.
In a snapshot taken on 4 November at 08:00 (UTC+8), Gate reported cold-storage coverage of 104.58%. Cold wallets held 88.26% of platform assets and hot wallets held 11.74%. The exchange says that, under its calculation method, cold storage alone could cover all user assets if hot-wallet assets were lost.
An independent third-party auditor is reviewing the figures, and Gate says it will publish the report after verification. PoSEC builds on Gate’s proof-of-reserves work, introduced in 2020, and existing safeguards such as hot-and-cold wallet separation, multisignature controls, multiparty computation (MPC) and risk monitoring. Until the audit is published, the reported PoSEC figures are not independently confirmed. The disclosure adds information about custody risk but does not eliminate exchange risk or signal a direct change in crypto prices.
Neutral
The announcement concerns Gate’s custody and security disclosures, not a change to the fundamentals or supply of a specific cryptocurrency. As a result, it has no clear direct price catalyst for GT, Gate’s associated exchange token, or the wider crypto market.
In the short term, traders may view the reported cold-storage coverage positively, but the figures are still awaiting independent verification. That uncertainty, along with the lack of a direct market catalyst, makes a sustained price response unlikely. Over the longer term, independently verified security disclosures could support confidence in Gate and potentially benefit sentiment toward its platform token. However, PoSEC does not remove exchange or custody risks, and any effect on GT would depend on broader market conditions, token demand and the eventual audit findings.