After the crisis in FTX, the rumors continue. Now, another Bitcoin exchange is facing claims that it will go bankrupt.
Another Bitcoin exchange is in crisis!
Kris Marszalek, CEO of Bitcoin exchange Crypto.com, is clearing up the FUD surrounding the crypto exchange’s liquidity issues after FTX filed for bankruptcy during an AMA session on Monday. Marszalek echoed his earlier statement of strong balance sheet and limited exposure to FTX. Crypto.com’s native token Cronos (CRO) slumped 50 percent due to a mismanaged $400 million Ethereum transfer and exchange-related FUD.
Crypto.com CEO Kris Marszalek made a quick AMA announcement on Nov. 14 to clean up the liquidity surrounding FUD on the crypto exchange. FTX’s crisis damaged investors’ confidence. However, it will be even more difficult to recover if something happens again. After recovering $990 million, Kris Marszalek reiterated her statement that she has a strong balance sheet and $10 million of limited exposure to FTX. The exchange also announced that it has undergone an external audit to reveal its Proof of Reserve.
Meanwhile, the exchange announced the cryptocurrencies in cold wallet addresses. The audit is expected in March next year. However, the CEO said in his statement:
We will prove all of us wrong by our actions. We will continue to work as we always have. We will continue to be the safe and secure place where everyone can access crypto.
CEO asked about resources in reserves
Crypto.com CEO said that most of the revenue comes from fees on fiat exchange and crypto trading, while others come from merchants who accept crypto payments. He also said that 20 percent of Shiba Inu reserves in cold wallets are client funds:
Withdrawals are working as expected for Crypto.com. The one stop was about GALA, SRM and Ray. Crypto influencers have been spreading FUD related to crypto exchanges continuously since the crash. He also compared the crypto winter to the crypto fall in 2018. He also touched on the benefits of partnering with FIFA.
Bitcoin exchange altcoin CRO drops after allegations
Crypto.com native token Cronos (CRO) tumbled almost 50% after the exchange accidentally sent $400 million worth of Ethereum to an address on the Gate.io crypto exchange. At the time of writing, CRO price is up over 7% in the last 24 hours to trade at $0.070.
According to reports, Crypto.com saw a massive pullback by investors over the weekend as the Company’s CEO, Kris Marszalek, admitted to mishandling the $400 million transaction. He stated that the transfer was sent to the wrong type of account on another exchange.
Twitter users flagged a heavy transaction such as the move of $400 million worth of Ethereum on October 21, 2022. They highlighted some other transfers between other smaller platforms and exchanges as evidence. Meanwhile, Marszalek assured that this was done accidentally and the tokens were recovered. However, the Crypto.com CEO’s comments failed to regain the trust of investors. The price of its native token, Cronos, has dropped by 50 percent over the past 7 days. This comes as a major threat to the digital asset market after the collapse of FTX.
CRO recovers price
Crypto.com announced that its CEOs will go live on Youtube to answer all questions and speculations about transactions reported on the platform. He wrote that a lot has happened last week and he wants to address it. A spokesperson from Crypto.com emphasized that the platform has recorded higher levels of activity. However, he claimed that the assets fully matched the customer deposits. He added that fluctuations in deposit and withdrawal activities do not affect our level of service.
Cronos prices have dropped over 10% in the last 24 hours. At press time, it is trading at an average price of $0.063848. CRO’s 24-hour trading volume increased 175% to $255 million. Whale alert reports that 200 million CRO tokens were added by a whale wallet in a single transaction. Over $11.5 million in Cronos tokens were moved from Crypto.com.
Singapore-based cryptocurrency exchange Crypto.com has been grappling with speculations of mounting financial troubles after the collapse of FTX. This uncertainty has caused a drop in the local cryptocurrency Cronons. But its CEO stepped forward to reassure investors.
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