According to Sumit Gupta (CoinDCX) on Twitter, CoinDCX's proof of reserves demonstrates that customer funds are secure and verifiable, with reserves consistently exceeding customer holdings and all data being backed by third-party audits (Source: @smtgpt, May 7, 2025). This transparency is crucial for traders assessing exchange reliability, as robust proof of reserves directly impacts crypto market confidence and trading volume, especially amid increasing regulatory scrutiny.