I think we all know the story behind PoR. We all accept that it’s mostly useless and even deceptive without liability data. Gate.io was one of the first exchanged to publish proof of reserves, one of the few independently audited proof of reserves and further one of the only that published PoR with liabilities. That list may only have four or so other exchanges. There is however a big problem.
They published PoR with liabilities that were audited by Armanino that showed Gate.io were overcollateralized(fully backed user funds + extra) however, this only covers two assets, namely BTC and ETH, with collateral ratios of 107.79% and 104.45% respectively. On the surface some may seem satisfied by reserves report covering the “maincoins” but it is absolutely not. Gate.io have BTC and ETH only account for 30% of their total assets. (calculated from on-chain values of Gate.io address & Nansen tracker)
This is yet another example of how layman misunderstanding is hugely dangerous. The community celebrated when Gate.io published it’s PoR with liabilities. But there is no world where proving you only have 30% of the funds you are supposed to have is remotely a positive thing, liabilities or not.