Focusing on customer trust and security, the leading blockchain-powered poker platform CoinPoker aims to further enhance customer confidence by fully disclosing its asset reserves. On July 26, CoinPoker announced on X (formerly Twitter) its proof of reserves, revealing that it maintains a reserve ratio of more than 100% of its customer deposits.
CoinPoker currently has $17.44 million in total assets verified through public wallets compared to $15.84 million in total client deposits. This move is a significant boost to CoinPoker’s credibility and to the broader online gaming industry, as it marks the first time a poker platform has provided such a high level of transparency for its users.
The importance of “proof of reserves” in the crypto industry
Proof of reserves measures a crypto company’s assets and liabilities by comparing and reconciling these two databases. In other words, it demonstrates that the platform has sufficient liquidity in relation to the assets stored by its users.
Following the collapse of FTX in 2022 – when the exchange was unable to meet withdrawal demands due to a liquidity crisis triggered by allegations of misappropriated funds – there has been a strong push for greater transparency and accountability among crypto exchanges. As a result, leading centralized exchanges have started publicly disclosing their reserves, a practice that continues to be adopted, as shown by Coingecko data below:
Indeed, exchanges have taken significant steps to demonstrate their solvency and address investors’ concerns about fund security. Now, in a pioneering move for the gaming industry, CoinPoker is setting a new standard by publicly disclosing its reserves through transparent wallet disclosures, aiming to bolster its credibility in the gaming sector.
CoinPoker: Pioneering full asset transparency in online poker
Several approaches to proof of reserves (POR) verification exist, such as public wallet addresses, Merkle tree hashes, or third-party audits. While each method has its unique advantages and limitations, CoinPoker has opted for public wallet addresses because blockchain technology enables real-time verification of holdings.
By storing customer assets in a combination of hot and cold wallets, CoinPoker ensures complete transparency. This allows users to easily detect any discrepancies between the platform’s holdings and their deposits, which can be viewed on CoinPoker’s website. As noted, CoinPoker holds over $17.44 million in reserves, exceeding its total customer deposits by a 1:1.1 ratio. This means the reserves are about 10% higher than the customer deposits, meeting and even surpassing its goal of maintaining a 1:1 ratio at all times.
Notably, 60% of CoinPoker’s assets are stored in cold wallets, including BTC and USDT-ETH Cold Wallets. This long-term storage strategy minimizes exposure to the risks associated with hot wallets, significantly enhancing the security of clients’ funds.
CoinPoker is boosting the trust in the online betting sector
The online gambling market has experienced substantial growth. In 2021, the US market alone was valued at $9.5 billion, marking an $800 million increase from 2020. Projections suggest a robust CAGR of 12%, potentially elevating the market to around $18.73 billion by 2030.
Despite this growth, a KPMG survey reveals that only about half of American bettors trust operators to act fairly, provide honest disclosures, ensure timely withdrawals and payouts, and safeguard their information. This underscores a major opportunity to enhance trust within the online betting sector, and CoinPoker is leading the efforts to address this gap.
In addition to its transparent reserve practices, CoinPoker has partnered with Fireblocks, a leading digital asset security firm. This collaboration ensures that CoinPoker’s funds are secured in multi-auth vaults, which require multiple levels of authorization for any transaction, preventing any single individual from accessing or moving funds without consensus.
CoinPoker also holds a Curaçao eGaming License, underscoring its commitment to regulatory compliance and legal standards. These measures ensure that CoinPoker remains the trusted choice for online crypto poker.
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