Suncrypto’s Take On Proof of Reserves and Liabilities

Suncrypto Team understands that because of the current news of FTX, Alameda you people are very concerned about crypto but We assure you that we have no relation with FTX or any other platforms like Block Fi, or Voyager.

We are not dependent on FTX liquidity or have any exposure/ assets with FTX or its official token FTT. 

Not only this, multiple negative news about the crypto industry is going on these days and we want to tell you that we have no contact with them as well. Ups and downs like LUNA or FTX bankruptcy now are normal in the crypto market, you should just get over them by considering them an experience for the future. 

So Suncrypto has zero impact because of the FTX or any other crypto issue and you don’t need to worry about this. And I’m confident to tell you that your funds are 100% safe with us and we make sure to maintain the user liability in a 1:1 ratio.

Our team is well-trained and we follow all the risk management procedures, and consumer protection acts and maintain full transparency to ensure full user asset protection. 

After analyzing the situation we have disabled the trading of FTT tokens on our platform because of security concerns. We understand you must be hopeful for the return of FTX but we want you to avoid any losses or any challenging situation because of the FTX exchange. 

From the start, our mission has been to be the most user-friendly exchange for our users and we will never put security or funds at risk. 

Suncrypto’s Proof of Reserve and Liabilities

SunCrypto works with a placement system that mandates that the assets bought by you (our users) are stored 1:1 in our cold wallets, hot wallets, and off-chain. These cold wallets assure the highest security and more than 80% of our crypto are stored in them. 

Proof of Reserve and Liability are better understood with a ratio comparison of “Reserve to Liability (R2L).” 

Let’s understand this with an Example 

If any exchange has a user asset worth $1000, the liability on that is $1500 so the Reserve to Liability ratio will be around 66% which is considered quite low. The exchange which has good management and customer protection practices, the ratio will be around 100%. 

Below this, we have mentioned the chart of our ratio to Total assets owned (on/off-chain) / Total liability & contingencies. This includes the data of 25 cryptocurrencies whose customer crypto is stored on our exchange. 

From this graph, I hope you have gotten a clear idea of what We are trying to tell you. We hold all 100% of our crypto assets in custody from the user funds. We as an exchange understand the importance of customer funds and will never compromise them for personal gains.

We do not risk customer assets and maintain a safe custody approach. We also do not put the user funds for the collateral services, your funds are with us only. We do not participate in staking/trading in our proprietary capacity, nor do we use customer assets as leverage. At the same time, we do not encourage any such products on the platform.

We launched Suncrypto in mid-pandemic 2021, we handled so many challenges and that resulted in today’s Success of Suncrypto. From the start, we received so much love and trust from our users,  and every single day we are thankful for that. And that is our motivation to make Suncrypto, even more, better with time.

We have $150 Million in insurance from the Ledger company and we take continuous measures to ensure the safety and storage of users’ crypto. We do not have our own coin. As we have never exposed our user funds for any personal or company-related reasons. And we do periodic audits to follow the risk management procedures.

We will be doing the same in the future as well and will prove to our users with our dedication and safe practices along with user-friendliness that Suncrypto is the platform that they can trust. 

I hope the words presented in front of you were of some help to ease your worry about the situation FTX is facing. Our user’s crypto funds and data are safe with us regardless of the situation so keep maintaining your trust in us and continue your crypto safely with proper research #DYOR on the Suncrypto application. 

Regards, 

Umesh Kumar

(Founder and CEO, Suncrypto)

Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. All content provided is for informational purposes only, and shall not be relied upon as financial/investment advice. Opinions shared, if any, are only shared for information and education purposes. Although the best efforts have been made to ensure all information is accurate and up to date. Occasionally unintended errors or misprints may occur. We recommend you to please do your own research or consult an expert before making any investment decision. You may write to us at [email protected].