Luno, the leading cryptocurrency investment software, unveils a new feature to safeguard customers’ investments and enhance transparency, according to its report released on 14th February 2024. This feature is a new proof of reserve – and involves a third-party confirmation and ensuring Luno’s capability to collateralize customers’ investments. It is backed up by Merkle Tree functionality which issues financial status and reports of the customer with monthly verification.
The company will collaborate with Moore Johannesburg, an audit, advisory, and tax services firm in South Africa, to facilitate and oversee the monthly proof of reserves. This partnership reassures customers’ trust and confidence that the management of their crypto investments is held securely.
The company utilizes Merkle Tree, which is a data structure that represents larger datasets and enables users to verify all the datasets without revealing them. It is a standard of verification in delivering monthly reports in the crypto-investment industry endorsed by Dale Russell, the Director of Blockchain and Digital Assets at Moore Johannesburg. The company aims to preserve all customers’ investments in a 1:1 ratio, to ensure that the balance of each customer’s Luno wallet appropriately matches their actual investments.
The Customer can access this feature on the company’s website only through the Merkle Tree verification tool, but currently, the app lacks this feature and viewing their monthly proof of reserve report while verifying it, and navigating through this process is comfortable.
The company spotlights that its decision is a step forward in building trust and keeping over 12 million Customers’ minds at rest. However, there are no legal provisions for publishing the proof of reserve.
