PoR is a starting point, but real trust needs:
1️⃣ Solvency proof – assets ≥ full liabilities (Merkle or zero-knowledge proofs help).
2️⃣ Operational controls – key management, access permissions, incident response, custody workflows.
3️⃣ Liquidity & encumbrance transparency – can assets be converted to cash during a run?
4️⃣ Governance & disclosure – custody frameworks, conflict management, consistent reporting.

PoR helps, but accountability, solvency, and control are what users actually need.

Many users treat PoR as a safety certificate, but most are actually Agreed-Upon Procedures (AUPs):

Practitioner reports what was observed, no opinion on overall financial health.

Unlike audits, PoR doesn’t assure solvency or control quality.

️ Regulators, like the PCAOB, caution against over-reliance on PoR as proof an exchange can meet obligations.

Even with a PoR snapshot, exchanges can still be risky:

Liabilities can be incomplete (loans, derivatives, offchain payables).

Assets might be encumbered, lent, or illiquid.

Snapshots can be manipulated temporarily—borrowed to inflate balances and returned afterward.

Takeaway: PoR improves transparency but isn’t a full financial guarantee.

PoR checks usually involve:
1️⃣ Assets – the exchange shows control of wallets or signs messages.
2️⃣ Liabilities – a snapshot of user balances, often committed to a Merkle tree, letting users verify inclusion without revealing others’ data.

Properly executed, PoR proves coverage of assets over liabilities at a moment in time—but only that moment.

PoR is a way for crypto exchanges to show the assets they hold on behalf of users, usually via onchain transparency and cryptographic proofs.

It demonstrates that assets exist at a specific point in time.
It doesn’t guarantee solvency, liquidity, or risk management—so withdrawals can still be delayed in a crisis.

Even Binance, with $162.8B in user balances verified on Dec 31, 2025, can face these limitations.

The OKX-Binance dispute highlights tensions among major exchanges:

High-yield campaigns can create systemic risks.

Market crashes reveal structural fragility in crypto liquidity.

Blame is flying, but regulators and investors are watching closely.

️ October 10 serves as a warning: leverage and marketing matter as much as tech in crypto stability.

Industry experts and Binance reject Xu’s theory:

Haseeb Qureshi (Dragonfly): Bitcoin hit its low 30 minutes before USDe depeg, so USDe couldn’t have caused the cascade.

Guy Young (Ethena Labs): USDe’s price discrepancy happened after the market crash.

Binance blames a “liquidity vacuum” and extreme market volatility, not its products.

The debate underscores how fragile crypto markets can be under high leverage.

OKX CEO Star Xu claims Binance’s marketing of Ethena’s USDe synthetic dollar caused the October 10 market crash.

Xu alleges that offering 12% yield on USDe encouraged excessive leverage, creating a “leveraged loop” where traders farmed APYs as high as 70%, ultimately triggering liquidations when volatility struck.

Xu: “Long-term trust in crypto cannot be built on short-term yield games or marketing that obscures risk.”

Sony filed 2,256 patents in 2025 alone, yet most never become products. With 133,506 U.S. patents in the company’s portfolio, this no-button controller has a low probability of commercialization… but its focus on flexibility and accessibility gives it a better chance than the average patent.

Even if it never ships, the patent signals a shift in thinking about how we interact with games, moving beyond sticks and buttons toward intelligent, adaptive interfaces.

Sony’s patent (USPTO 12533573) emphasizes adaptive input surfaces over traditional buttons. While the patent references touchscreens, the tech could work with some physical inputs or entirely virtual ones.

This aligns with Sony’s focus on accessibility, like the PS5 Access Controller, and other patents that adjust functionality based on how you play—reclined, lying down, or using alternative grips.

The future of controllers may be less about buttons and more about customizable, adaptive input.

Sony has been granted a patent for a PlayStation controller that doesn’t use any physical buttons. Instead, it relies on touchscreens and sensors that detect taps, swipes, and finger positions, dynamically adapting virtual controls to how you hold the device.

The goal? Flexibility. One controller could fit different hand sizes, play styles, or accessibility needs—reducing the need for multiple specialized devices.

Note: Patents don’t always become products, but this shows where gamepad innovation is heading.

Freelancer tip: change your language on calls. Instead of saying, “I’d love to work with you,” try:

“Let’s talk through your goals and see if I’m the right fit.”

This subtle shift turns the dynamic upside down — you qualify the client, not the other way around.

Clients want strategy, not just labor. Ask thoughtful questions, find their ROI, and suddenly you’re irreplaceable.

Action this week: prep 5 questions about a client’s business goals before your next call — and watch how your role shifts from vendor to trusted advisor.

Most freelancers jump straight into “how to do the work” when a client asks for something. But the ones who become indispensable? They start by asking better questions:

What are you trying to achieve?

What have you already tried?

How will you know if this is successful?

What happens if you don’t do this?

This turns you from a vendor into a strategic partner, earning trust and unlocking premium rates.

Schedule a 30-minute discovery call before accepting any project. Listen more than you talk, dig into goals, and uncover the real problem — not just the symptom the client presents.

Since MiCA passed in 2023, crypto firms have been gradually implementing the framework. Companies operating before Dec 2024 must comply by July 1, 2026, or cease operations, though some countries shortened the compliance window.

The EU continues to push for tax transparency and regulatory consistency across the bloc as digital asset markets grow.

Hungary also received a formal notice from the EU for non-compliance with the Markets in Crypto Assets (MiCA) framework.

Some crypto services paused or stopped offerings under a Hungarian law amendment, but the European Commission stressed that AML measures must align with MiCA. Authorities have two months to respond.

The European Commission is sending formal notices to 12 EU countries—including Belgium, Spain, the Netherlands, and Poland—for failing to fully implement crypto tax reporting rules.

Member states have two months to comply, or the Commission may escalate with a reasoned opinion. The move aligns with OECD standards and aims to curb tax fraud, evasion, and avoidance in digital assets.

The clash between Mayor Mamdani and former Mayor Adams intertwines NYC’s fiscal crisis with Adams’ crypto venture. Mamdani blames Adams for underbudgeting essential services, while Adams cites billions in reserves and attacks the claims on X.

Meanwhile, the NYC Token controversy deepens public scrutiny: traders report significant losses, liquidity moves suggest insider advantage, and the token’s collapse adds tension to the ongoing budget debate.

Former Mayor Eric Adams’ $NYC token on Solana surged briefly to a $600M market cap before crashing over 60%, leaving 60% of 4,300 traders with losses. Analytics show a wallet linked to the token’s deployer withdrew $2.5M in USDC at the peak, raising rug pull concerns.

Despite reintroducing $1.5M in liquidity, the price didn’t recover, and questions remain about Adams’ involvement and intentions. He continues to publicly promote the token, even as the city budget debate intensifies.