Gate boasts 104% cold reserve coverage, but separate snapshot dates raise red flags

Crypto exchange Gate has introduced Proof of Security, a disclosure framework that proves its cold assets cover customer balances if it lost all its hot-wallet assets. Its Nov. 5 announcement reports 104.58% cold-storage coverage, using a storage snapshot taken at 00:00 UTC on Nov. 4. The published percentage compares asset shares from different snapshots, rather than establishing cold assets and customer balances on a single common date. Gate discloses that limitation, so customers need more than the headline ratio to verify the full-backing claim. Gate's PoSEC methodology compares an 88.26% cold-storage share with an 84.39% user-asset share.

Source: CryptoSlate