He warned that proof of reserves could endanger investors and institutions alike. Publishing wallet addresses is like handing over a treasure map, Saylor said. It dilutes the security of the issuer, the custodian, the exchange, and ultimately, the investor.
Why Saylor Says Proof-of-Reserves Is Risky
Proof-of-reserves is a method used by crypto companies to prove they hold enough assets to back customer deposits. This practice gained momentum after the shocking collapse of FTX in 2022. Exchanges like Binance, Kraken, and OKX now use it as a transparency tool, and even asset managers like Bitwise have followed suit. But Saylor argues that this approach may be doing more harm than good, especially when used by institutions.
If you list all wallet addresses, it allows malicious actors to trace your activity, he warned. No institutional-grade security analyst would recommend that. When pressed on whether Strategy would publish its reserves, Saylor sidestepped the question, instead pointing to security concerns.
I asked @saylor if @MicroStrategy has any plans to publish on-chain proof of reserves
His answer will SHOCK you
Its a bad idea.
Security Risk
Irrelevant without also having Big 4-audited liabilitiesCheck it out =G pic.twitter.com/tIxUckgbEp
Mitchell
