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Gate launches Proof of Security framework, reports 104.58% cold storage coverage

Crypto exchange Gate introduced a framework called Proof of Security that shows how user assets are split between cold storage and hot wallets. Independent checks of the current data are still in progress.

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Crypto trading platform Gate has launched a new asset security framework called Proof of Security, or PoSEC. The company says it is the first digital asset trading platform to roll out such a verification system.

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PoSEC goes beyond Proof of Reserves, or PoR. A proof of reserves checks whether a platform holds enough assets to cover what it owes users. PoSEC adds a look at how those assets are stored and how well the platform can cover extreme risks.

In numbers

  • 104.58%Cold storage coverage
  • 2013Gate founding year

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As part of this, Gate publicly discloses how assets are divided between cold storage and hot wallets. Cold storage means assets kept offline. Hot wallets are connected to the internet. The framework reports cold storage coverage of 104.58%.

Gate says it has put user asset security first since it was founded in 2013. It presents PoSEC as a practical step toward higher security standards across the industry.

There are caveats. The new hot-wallet loss test relies on separate measurement bases, meaning the figures behind it are not all drawn from the same snapshot dates. Independent verification of the current PoSEC data is still in progress.

For users, the figures show what Gate itself reports about how it holds assets. Until outside checks are finished, the numbers remain the company's own disclosure.

Background

Proof of Reserves checks whether a platform holds enough assets to back user balances. Gate was founded in 2013.

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This article is not investment advice. It was written by our automated newsroom from published reports and official statements, using only the facts in them, and not read by a person before it was published. Report a mistake
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