Although the FTX incident has sounded the alarm for us and promoted the further development of exchange transparency, in fact, the current asset verification scheme still has many loopholes including the above shortcomings. In many details, it is still difficult for the exchange to "prove its own innocence." The transparency of centralized institutions has always been an issue that has been widely concerned and discussed. Insufficient transparency will cause concerns among investors, but too much transparency may expose business secrets to a certain extent, and these contradictions do not only occur in the Web3 field.

To give a simple example, many centralized exchanges have launched cryptocurrency financial products. As long as the exchange does not abuse these assets, some may be used for quantitative trading, some may be used for hedging risks, some may be used in DeFi, and some may be used for mortgage lending. It is difficult for the exchange itself to disclose all uses to the public.