Unocoin has also finally responded to Proof of Keys movement. And its response is more precise and believable in nature than the responses of other exchanges.
Four days – that’s the time Unocoin took to respond to the Proof of Keys movement. However, their reply is more comforting to see than the replies of other exchanges, which makes up for the disappointment of response time. Unocoin yesterday published a statement on its website clearing its stance on the Proof of Keys movement, and here we’re going to tell you what that statement said on various fronts. Let’s get started:
On crypto holdings
Like other exchanges, Unocoin said that its holdings are higher than or equal to the holdings of its users. It also explained the reason behind how can they be higher than the holdings of users – because of company’s own stocks it sells from, and also because sometimes it buys directly from its users. The company also said that it doesn’t trade or lend the holdings of its users, and it also doesn’t send those holdings abroad. 99% of the holdings are stored in company’s own cold wallets.
On simultaneous withdrawals
A key point behind Proof of Keys movement was to see what happens if all the users of exchanges withdraw their crypto balances at the same time. Unocoin’s response to this question was much more believable and precise than the responses of its competitors. The company said that even if all users decide to withdraw their crypto holdings from Unocoin/UnoDAX simultaneously, the company will be able to process those withdrawal requests within 1 business day! In contrast, other exchanges have said that they’ll need 2-4 days to process those withdrawals (PocketBits 2 days, Coindelta 4 days). And the bigshots – namely WazirX and BitBns – didn’t even bother to provide any time frame. All they said was that users can withdraw their funds whenever they want.
Unocoin also touched upon the subject of 3rd party audits. And here’s what they said:
“We conduct periodic audits of our platform by internationally recognized security firms, and our company auditor performs the periodic auditing of digital asset balances. We also are willing to undergo any external audit by a reputed auditing firm like one of the Big fours if needed (even if it is initiated by one of our own users).”
The last line is critically important here because it’s something which has not been claimed by any of the other exchanges. It speaks volumes about the reliability of Unocoin and UnoDAX.
In the end, the company also said that while it does its best to keep the funds of users secured, it’s also important for the users to follow the security best practices outlined at Unocoin Security page for total security of their funds and crypto holdings. This is obviously true, because if we ourselves are at fault then we can’t blame the exchanges for our losses!