Strategy cofounder Michael Saylor has rejected the idea of publishing on-chain proof of reserves. 

"No institutional-grade or enterprise security analyst thinks that it's a good idea to publish all of the wallet addresses…so that you can be traced back and forth, and every future transaction can be traced," he said. 

Saylor has argued that this would be tantamount to publishing the bank accounts and phone numbers of your kids. 

The argument still did not sit well with some members of the cryptocurrency community, who place an emphasis on transparency. 

Some believe that Saylor's refusal to publish on-chain proof is a major red flag. 

Bitcoin O.G. Stefan Jespers (who is best known as "Whale Panda" on X) was among those who slammed Saylor following his recent comment.   

"Talking about a major red flag. He compares it to publishing bank accounts and phone numbers...The whole point of Bitcoin is its transparency," he said. 

In fact, Saylor detractors claim that proof of reserves can actually be accomplished with zero security risks. Bitwise, for instance, has implemented a "proof of holdings" system for its crypto ETPs. Crypto exchanges also ensure transparency without putting their assets at risk. 

The billionaire's most recent controversial statement has also revived conspiracy theories about Strategy holding paper Bitcoin. 

Some also recalled that Saylor famously lost $6 billion in a single day back in 2000 after his stock plummeted due to an accounting scandal.