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๐ก๏ธ Gate's Cold Storage Covers 104.58% of User Assets. Here's What That Means
Gate has introduced Proof of Security (PoSEC), a new standard that shows not just whether user funds are backed, but where they are kept. The headline number: assets in Gate's cold wallets equal 104.58% of all user assets. Cold storage makes up 88.26% of Gate's reserves, while user assets account for 84.39%. The stress test is simple. Hot wallets, the online wallets used for fast withdrawals, hold 11.74% of reserves. Even if all of them went to zero, cold storage alone would still cover every user balance, with 3.87 points to spare. Gate's own funds (15.61% of reserves) could absorb that loss 1.33 times over. Much of this can be checked independently. Gate's latest Proof of Reserves (October 18) reports 25,727 BTC against 21,156 BTC in user balances, a 121.6% ratio. Of that, CryptoQuant independently tracks 17,802 BTC (~$1.43B) in wallets it links to Gate, up 8.6% from a year ago, while BTC held across all exchanges fell 1.2%. PoSEC builds on Gate's Proof of Reserves, checked by an outside auditor since 2020 and open-sourced in 2022. It has two levels: Disclose (publish the cold-to-hot split) and Cover (cold storage covers all user assets). Gate is committed to Cover, with third-party verification underway and updates on a fixed schedule.