- Saylor stated that the current ‘proof of reserves’ was uncertain and a ‘bad idea’ for institutions.
- The crypto community called his por posture a ‘big red flag’.
Michael Saylor has the calls for his company, strategy (formerly micro strategy), avoiding the proof of reserves (POR) for his reported Bitcoin [BTC] Holdings.
During the Bitcoin conference in Las Vegas, Saylor Por mentioned as a ‘bad idea’ and a security risk.
“The current, conventional way of publishing reserves is uncertain. It dilutes the safety of the issuer, preservators, exchange and investors.”
He added,
“It’s not a good idea, it’s a bad idea, such as publishing the address, bank accounts and telephone numbers of your children and thinking that it will improve your family.”
According to him, the current POR is not relevant without the controlled obligations of institutions. As such, for safe certificate from the crypto -reserve companies can be checked by the BIG 4 (PWC, KPMG, etc.) the best shot.
Mixed reactions to Saylor’s attitude
However, the majority of the X Crypto community did not agree with him. Whale Panda called Saylor’s attitude A ‘Big Red Flag. ‘
“Speaking of a large red flag. He compares it with publishing bank accounts and telephone numbers … The entire point of Bitcoin is the transparency.”
Another market keeper, Padditor” reflect Walvispanda’s sentiment and added,
“Por can endanger your privacy (and there is a valid list of criticism about it), but it generally does not compromise your coins. Saylor either has anything to hide, or he is completely ignorant about how Bitcoin works.”
Momentum after the FTX implosion in 2022 in the midst of the gross embezzlement of customer funds was evidence after the FTX implosion.
In response, the most important leaders of the industry, in particular exchanges such as Kraken, began to publish their por to guarantee transparency.
At the same time, revealing wallet addresses with funds can attract threat actors. In essence, the above discussion is not about whether Saylor or his critics are right or wrong, but a careful balance between transparency and safety.
That said, the strategy now owns 580,250 BTC Or 2.7% of the total offer, worth around $ 63.46 billion at current prices.
The costs of acquisition are reportedly $ 40 billion, which means that the company is more than $ 22 billion in non -realized profit. Arkham, however, has alone managed To follow $ 35 billion BTC from its companies.
In the meantime, Saylor has publicly stated that he will not sell the BTC companies and will always buy the top. But any sale per strategy, infringement, bankruptcy or another negative update can drag BTC and the general crypto market.
This is in particular the risk council that the crypto community has evoked in the past, given the growing influence of the company on BTC offering.
The shares of the strategy, MSTR, closed the trade session from 26 May to $ 269, which marked a loss of 7.5%. The performance of MSTR followed the price fluctuation of BTC above $ 106k.