In response to the rumors that have been dragging on for a few days, Crypto.com CEO Kris Marszalek spoke out to reassure investors. He says that an audit of Crypto.com’s reserves is underway to demonstrate the exchange’s transparency and good health.
Is crypto.com finally safe?
Kris Marszalek, CEO of Crypto.comwanted to clarify the situation in the face of rumors that evoke a liquidity crisis within the cryptocurrency exchange following the FTX affair.
In fact, rumors from the hallway let it be known Crypto.com has been exposed to over $1 billion in stablecoins on FTX at the time of its collapse. In a live YouTube date, Kris Marszalek says this $1 billion has indeed been transferred to FTX, but over a 12-month period.
🔴 LIVE – Follow the FTX deal in real time
Also, according to him, when FTX decided to stop withdrawals, Crypto.com was exposed to it for $10 million alone. He adds that FTX actually received some of its clients’ orders, as the platform was one of the only ones with substantial liquidity for some cryptocurrencies. ” Those are the facts, and everything else is just FUD “, he specifies.
It also claims that Crypto.com has never used its own token (the CRO) as collateralunlike FTX and its FTT, which by the way is the main cause of its recent collapse.
And what’s more, we recently learned that Crypto.com mistakenly sent $400 million in the form of Ether (ETH) to the Gate.io exchange, news that hasn’t helped restore investor confidence in centralized exchanges. According to the CEO of Crypto.com, funds have never been in danger although there was indeed an error, as the destination addresses need to be whitelisted and approved:
“The funds were not in danger of being lost. The system didn’t allow us to send money somewhere where it couldn’t be picked up. “
👉 Discover our tutorial to keep your cryptocurrency safe
The French unicorn of crypto wallets 🔒
A complete crypto experience, from purchase to security
Soon an external audit for the platform
In order to demonstrate transparency at a time when investor confidence in cryptocurrencies is at an all-time low, Crypto.com has published the different addresses of its cold wallets containing Bitcoin (BTC), ETH or other ERC-20 tokens.
The addresses in question show 53,024 BTC and 391,564 ETH, for a total of about 3 billion dollars combined with other cryptocurrencies held by Crypto.com.
According to the statement on the transparency of the company’s reserves, the latter ensures that a cash flow audit was performed with an outside company in order to release proof of reserves in the coming weeks. In the statement, Crypto.com encourages other exchanges to do the same, echoing Changpeng Zhao, CEO of Binancewhich had issued the same warning.
This afternoon, the site’s withdrawal capabilities were slightly affected by a large number of simultaneous withdrawals. However, around 6pm Kris Marszalek announced via Twitter that the withdrawals were working normally.
👉 In The News – FTX: Approximately $400M FTT Tokens Added to Outstanding Supply
Alyra, training to integrate the blockchain ecosystem ⛓️
Receive a cryptocurrency news summary every Monday via email 👌
What you need to know about affiliate links. This page presents assets, products or services related to investments. Some links in this article are affiliates. This means that if you buy a product or register on a site from this article, our partner pays us a commission. This allows us to continue to offer you original and useful content. There is no impact on you and you can even get a bonus using our links.
Investments in cryptocurrencies are risky. Cryptoast is not responsible for the quality of the products or services presented on this page and cannot be held responsible, directly or indirectly, for any damage or loss caused as a result of the use of a good or service highlighted in this article. Investments related to cryptocurrencies are risky by nature, readers should do their own research before taking any action and invest only within the limits of their financial capabilities. This article does not constitute investment advice.