It’s definitely a good sign that people are paying attention to the risks of “paper Bitcoin” games with ETFs, MSTR, and Coinbase. The skepticism keeps the ecosystem on its toes. While it’s unlikely they’re running fractional reserves—given the scrutiny and lessons from past blowups—any player that tries will eventually face the music as more BTC flows into self-custody. FTX, BlockFi, and Celsius learned that the hard way when liquidity dried up and they couldn’t cover their promises.

Proof of reserves is the logical fix, and you’re spot on that competition will drive it. Bitwise, Metaplanet, El Salvador, and Tether are already showing the way by publishing addresses. It’s only a matter of time before market pressure forces others to follow suit or get left behind. Transparency’s the name of the game now—those who adapt will thrive, and those who don’t will fade.