Proof of Reserves is like checking if a bakery actually has the cupcakes they claim to have in stock.

You can verify the inventory exists right now. What you CAN'T verify: whether they'll sell the same cupcakes twice, borrow against them, or if half are already promised to someone else.

PoR shows assets at a snapshot. It doesn't show liabilities, rehypothecation risk, or real-time solvency. It's better than nothing, but it's not a full audit.

This is why on-chain transparency > trust-me-bro attestations.