Why Proof of Reserves (PoR) alone cannot establish true trust. Proof of Reserves only shows assets at a specific point in time and does not demonstrate financial soundness, liquidity, or sound governance.

Proof of Reserves has limitations and cannot fully prove the financial health of an institution. It may overlook issues such as liabilities, off-balance sheet exposures, or potential insolvency risks.

True trust requires ongoing transparency, comprehensive audits, and assurance that the institution maintains sufficient reserves over time, not just a snapshot at one moment.

Relying solely on PoR can give a false sense of security, as it does not account for future risks or hidden vulnerabilities. Building genuine trust involves consistent verification, strong governance, and transparent operations.