Major crypto exchanges are trying to prepare Proof of Reserve audits. The first major Bitcoin exchange was Crypto.com. Then it turns out how many dog-themed meme cryptocurrencies the exchange has in its reserves.
Which memecoin does the Bitcoin exchange hold?
FTX’s collapse took a step towards publishing evidence of its reserves as a way of providing transparency to assets among competitors. Bitcoin exchange Crypto.com has taken a proactive step to provide a series of preliminary clarifications. The exchange presented a dashboard of nearly $3 billion in reserves and other assets. He shared wallet addresses with blockchain analysis firm Nansen.
The assets are stated to be the meme coin Shiba Inu (SHIB), which is largely built on the Ethereum blockchain. About $558 million, or 20 percent, of the $2.88 billion total assets in wallet addresses are in SHIB. The cryptocurrency exchange has $872 million worth of Bitcoin (BTC), representing 31 percent. The amount exceeds that of the leading altcoin Ethereum, according to Nansen data. However, it outpaces the $1.5 million Dogecoin (DOGE).
Exchange spokesperson: Our Proof of Reserve is determined by client assets
A Crypto.com spokesperson made a statement on the subject:
The reason our Proof of Reserve includes Shiba Inu is because we keep clients’ balances 1:1. Therefore, our Proof of Reserve is determined by our client assets.
Nansen data journalist Martin Lee shared, via a Telegram message, that Crypto.com is the major SHIB holding:
It is a reflection of user interest/activity. In an ideal world, we want the best assets to be the most valuable. However, SHIB and DOGE both have extremely high market capitalizations. It is not surprising that retail-dominated exchanges have a higher concentration of such tokens. And regardless, as an exchange, your main source of income will likely be trading fees. So whether it’s meme coins or more fundamentally sound assets, your business model is intact.
Shiba Inu quickly adopted
As we have reported as Kriptokoin.com; The Shiba Inu (SHIB) emerged through a $1.2 billion transfer to Ethereum founder Vitalik Buterin in May 2021. Then, Buterin sent the SHIBs to the India COVID-19 Relief Fund. SHIB is one of the most popular cryptocurrencies. The Shibtoken account on Twitter has 3.6 million followers. In addition, after the crisis in the crypto markets, the altcoin has a market value of $ 5.74 billion.
Nansen then revealed his reserves through wallet addresses he collected on a single dashboard. Crypto.com CEO Kris Marszalek confirmed the data on the dashboard via a tweet. He said that the exchange will provide additional details on all the cryptocurrencies it holds in the next few weeks.
Exchanges share their altcoin projects
Exchanges took action on transparency as FTX went bankrupt this week following a major liquidity crisis. The White House has called for greater regulation of the cryptocurrency industry. There are potentially billions of dollars worth of inaccessible assets on the FTX platform right now. According to CoinGecko data, SHIB ranks 14th with a market cap of $5.7 billion. However, SHIB is an ERC-20 token and runs on the Ethereum network.
SHIB is down 4.1 percent in the last 24 hours. It is currently trading at $0.00000966. However, memecoin is 88.6 percent lower than its all-time high. In 2021, its market cap briefly rose to over $41 billion. As a result, it provided a greater market capitalization than many companies in the S&P 500.
51653
