JuCoin $511 million Proof of Reserve Questioned by Community, On-chain Assets Mostly JuChain Native Wrapped Tokens

BlockBeats News, June 6th: Former CMO of Web3 security company Salus, Darcy, published an article revealing the authenticity investigation of JuCoin platform's asset reserves, stating that the "USDC" on JuChain is an ERC20 deployed by the project team and can be arbitrarily increased, rather than a genuine asset issued by Circle.

The official PoR page of JuCoin disclosed a total reserve of approximately $5.11 billion and a reserve ratio of 123.81%, mainly based on six types of assets: USDT, BTC, ETH, USDC, BNB, and SOL. CoinMarketCap's Ju.com page also links the related assets to the same address 0x0D141Fd7a9Ed772678522933D424E10eB4CAc48d, noting that the data is directly reported by the trading platform.

Further investigation on the JuChain explorer revealed that the USDC, USDT, BTCB, ETH, BNB, and SOL held by this address are all ERC-20/BridgeToken mapped assets on JuChain, rather than assets from the corresponding issuers or native blockchain itself. Among them, there are only 14 holders of USDC on JuChain, with the PoR address holding about 99.99% of the supply; the related contracts also have minting capabilities and the MINTER_ROLE permission, allowing for arbitrary issuance.

Publicly available information shows that JuChain is not included in the official native USDC support chain list by Circle or the official USDT support protocol list by Tether. Therefore, the disclosed reserve data by JuCoin can only prove that it holds mapped tokens with corresponding names on the JuChain ledger, but it does not yet demonstrate its possession of equivalent genuine third-party redeemable assets.

In the future, JuCoin will need to disclose the custody addresses behind the mapped assets, cross-chain bridge mechanism, redemption rules, and third-party audit evidence to address the market's doubts about the authenticity of its reserves.