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What Verified Means

Audits, attestations and proof of reserves check different things

Risk & Red Flags · Lesson 11.2

In RWA, 'verified' can mean several different checks, and each one covers a defined scope. A round number with no report behind it is none of them. Before relying on the word, ask which check was done, what it covered and when.

AUDIT

An independent auditor examines financial statements against accounting standards and gives an opinion. It covers the period and the entities in scope, not everything about a product.

ATTESTATION

An accountant reports on specific claims made by management, such as whether reserves covered the tokens in issue. Some cover a single date, others a period. Read what was tested.

PROOF OF RESERVES

Shows that assets matching the token supply exist, sometimes updated continuously through an oracle. On its own it does not show liabilities, so it does not establish solvency.

Wally’s note: checked by whom? covering what?

Ask who did the check, what it covered and for which date or period.

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