Following the collapse of FTX, speculation has risen that other Bitcoin and altcoin exchanges will go bankrupt. Crypto.com is currently facing the greatest concern as it accidentally transferred nearly $400 million worth of Ethereum to a whitelisted Gate.io address instead of a new cold storage address. Here are the details…
Concern for Bitcoin and altcoin exchange Crypto.com
Nearly 90,000 unique transactions were made on the exchange in the last 24 hours. This shows that customers are trying their best to withdraw their money from the exchange. It also shows that people are losing confidence in the stock market. Altcoin Daily, a popular YouTuber and crypto analyst, gave its 1.26 million Youtube subscribers information about how users reacted. He decided to take up this issue. He also underlines the points shared by the company’s CEO, Kris Marszalek, during the Q&A session.
Update*
Funds still not arrived
Funds still pending
My concern is growingPeople reporting smaller transactions are fine, but seeing a lot of issues with larger transactions
— That Martini Guy ₿ (@MartiniGuyYT) November 14, 2022
First, the analyst cites users who voiced their concerns. First, he talks about Martini Guy YT, who explained that it has been 24 hours since Crypto.com requested to withdraw 2 BTC and he still has not withdrawn his coin. The user also says that the firm may have gone bankrupt. The host then discusses the many unanswered questions that CEO Kris Marszalek raised in his recent Q&A session with Crypto.com’s CMO, Steve.
Withdrawals stopped for these altcoins on Crypto.com
The first question was whether Crypto.com stopped withdrawals. Kris immediately denied this claim and said they were working as usual. He also claimed that activity on the platform has increased, which means more revenue with increased trading volume. Kris revealed that the firm has stopped withdrawals in only three coins: Gala, SRM and Array. The next important question posed to Kris was, “How was $400 million in ETH accidentally transferred to the wrong wallet?” it happened.
The CEO said that every address to which funds were transferred is whitelisted. He explained that in case of any error, the systems will ensure that the funds are returned. He admitted the mistake and assured viewers that Gate.io had returned all the money. Then, Kris was asked perhaps one of the most critical questions on everyone’s minds: Is the stock market in financial trouble? He expressed his response to this claim as follows:
These comments have been around for several years and all I can say is we will do what we always do. We will prove people wrong by our actions, not our words.
The CEO also explained his ties to FTX
He was also asked to explain why his firm holds more SHIB than ETH – another major cause for panic for investors. “We stored one-on-one and everything the customer bought,” the CEO said. Last year people bought more DOGE and SHIB coins and are still holding them. Therefore, as long as our users hold it, we will be holding it.” The CEO also clarified his ties to the bankrupt crypto firm FTX, as Crypto.com has less exposure to FTX and has a solid balance sheet.
Last week, the FTT token wiped out billions of dollars from the crypto market, and its influence now appears to be spreading to other cryptocurrencies, as Crypto.com’s native token Cronos (CRO) has witnessed massive withdrawals in the last 24 hours. As it is known, the CRO fell below the $0.08 support. It’s changing hands at $0.0757 at the time of writing. Although it has risen 10 percent in the last 24 hours, the coin has lost 40 percent in a week.
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