Since FTX’s bankruptcy, the head of Crypto.com has tried to reassure investors about the resilience of his platform, to no avail.
The bankruptcy of FTX has serious consequences for the model of centralized trading platforms (exchanges). Most suspiciously, many users have decided to withdraw their cryptocurrencies from their platforms to put them in wallets (Ledger hot or cold wallet) to secure them. This has happened on many exchanges and especially on Crypto.com.
‘Very strong balance sheet’
According to the specialized website Nomics, which analyzes real-time data on exchanges, the Crypto.com daily volume It’s down from $5 billion a day last May to about $300 million today. To reassure investors, Crypto.com has a “very strong balance sheet”, He assured his boss during the live broadcast.
The fact remains that since the disclosure of FTX’s financial arrangements, which were mainly carried out via House Token (FTT) without falling far behind its counterpart, we want to know what these platforms are based on. However, for now, this remains difficult despite giant Binance’s proposal to make the platforms more transparent about their portfolios, since most of them are unlisted companies, and therefore not subject to a duty of transparency.
However, A.J informal audit He explains that Crypto.com is based in part on a highly speculative cryptocurrency, shiba, which is a cryptocurrency of the same type as Dogecoin, Elon Musk’s favorite cryptocurrency. It appears that out of the $2.88 billion in total assets in Crypto.com’s portfolios, about $558 million, or about 20%, is in the Chiba cryptocurrency.
“The reason we have Proof of Reserves inclusive of Shiba is because we hold our customers’ balances 1:1. So our Proof of Reserves is driven by our customers’ holdings,” a Crypto.com spokesperson told CoinDesk. “In an ideal world, we would like the best assets to be more valuable, but both shiba and dogecoin have very high market caps,” he added.
Additionally, CNBC reveals that the previous company Chris Marsalek worked for in Australia, an online shopping platform, abruptly closed in 2016, leaving all of its active customers on the ground. All of this is causing trouble and now Crypto.com, which among other things sponsors the Los Angeles Lakers’ home ground, is clearly on the horizon.