Michael Saylor Warns Against Onchain Proof-of-Reserves Over Security Concerns

Michael Saylor, executive chair of Strategy, criticized the practice of institutions publishing on-chain proof-of-reserves, calling it a “bad idea” that poses significant security risks.

He argued that revealing wallet addresses undermines the security of issuers, custodians, exchanges, and investors.

While proof-of-reserves has become more common in the crypto industry, especially after the FTX collapse, as a way to promote transparency, Saylor contended it only shows what a company holds, not what it owes.

He also declined to say whether Strategy would publish its own proof-of-reserves.

Source: Cointelegraph