- Saylor said that the current “proof of reservations” was not sure and a “bad idea” for institutions.
- The cryptographic community has called its porcelain position a “large red flag”.
Michael Saylor avoided calls for his business, Strategy (formerly Microstrategy), to publish proof of reservations (POR) for his report Bitcoin (BTC) Holdings.
Speaking at the Bitcoin conference in Las Vegas, Saylor described the PO as “bad idea” and a security risk.
“The current and conventional way of publishing proof of reservations is not safe. He dilutes the safety of the transmitter, guards, exchanges and investors. ”
He added,
“It is not a good idea, it is a bad idea, like publishing the address, bank accounts and phone numbers of your children and think that it will improve your family.”
According to him, the current por is not relevant without the audited liabilities of the institutions. As such, for a safe and secure crypto reserve certificate, companies verified by the Big 4 (PwC, KPMG, etc.) can be the best blow.
Mixed reactions on Saylor’s position
However, most X Crypto Community do not agree with him. Panda of whales called the position of Saylor A ‘major red flag.
“Talking about a major red flag. He compares it to the publication of bank accounts and telephone numbers… The whole point of Bitcoin is his transparency. ”
Another market observer, Beach,, echo Feeling of the panda whale and added,
“Por can compromise your privacy (and there is a valid list of criticism on this subject), but it does not compromise in the safety of your parts. Saylor has something to hide, or it is completely ignorant of the functioning of Bitcoin.”
The concept of proof of reserve gained momentum after the implosion of the FTX in 2022 in the midst of poor gross appropriation of customer funds.
In response, the key leaders of the industry, in particular exchanges like Kraken, began to publish their POR to ensure transparency.
At the same time, revealing portfolio addresses with funds can attract threat actors. In essence, the above discussion does not concern if Saylor or its detractors are good or erroneous, but a meticulous balance between transparency and security.
That said, the strategy now has 580 250 BTC Or 2.7% of the total offer, worth around 63.46 billion dollars at current prices.
The cost of acquisition would be $ 40 billion, which means that the company is on more than $ 22 billion in unpaid profits. However, Arkham has only managed To follow $ 35 billion BTC dollars of its participations.
Meanwhile, Saylor publicly said that he would not sell BTC holdings and still buy the summit. But any sale by strategy, violation, bankruptcy or any other negative update can drag BTC and the global cryptography market.
This is particularly the risk that the cryptographic community has raised in the past, given the growing influence of the company in the BTC supply.
The actions of the strategy, MSTR, closed on May 26 of the May 269 negotiation session, marking a loss of 7.5%. MSTR’s performance followed the fluctuation in BTC prices above $ 106,000.
