Since the bankruptcy of FTX, the boss of Crypto.com has tried to reassure investors about the stability of his platform, to no avail.
The bankruptcy of FTX has major consequences for the model of centralized trading platforms (exchanges). More suspiciously, many users have decided to withdraw their cryptocurrencies from its platforms to place them in wallets (hot or cold Ledger type wallets) to secure it. This happens on many exchanges and especially on Crypto.com.
“A strong balance sheet”
According to the specialized site Nomics, which analyzes real-time data on exchanges, the Crypto.com daily volume dropped from $5 billion a day in May to $300 million today. To reassure investors, Crypto.com has “a very strong balance”, assured his boss during a live streaming.
The fact remains that since the disclosure of the financial arrangements of FTX, mainly made through the house token (FTT) without excess behind as counterpart, we want to know what these platforms are based on. However, at the moment, it remains difficult despite the proposal of the giant Binance to make the platforms more transparent about their portfolios, because most of them are not listed companies, therefore not subject to the duty of transparency.
However, an unofficial audit shows that Crypto.com relies on a part of a very speculative cryptocurrency, the shiba, a cryptocurrency of the same type as Dogecoin, the cryptocurrency with the head of Elon Musk’s favorite dog. It appears that of the $2.88 billion in total assets in Crypto.com wallets, about $558 million, or about 20%, is in the shiba cryptocurrency.
“The reason our proof of reserves includes Shiba is because we hold our client’s balance 1:1. So our proof of reserves is driven by our clients’ assets,” said the Crypto spokesperson. com on CoinDesk. “In an ideal world, we would want the best assets to be the most valuable, but shiba and dogecoin both have very high market caps,” he added.
In addition, CNBC revealed that the previous company where Kris Marsalek worked in Australia, an online shopping platform, suddenly closed in 2016, leaving all its active customers on the floor. All this caused trouble and now Crypto.com, which promotes among other things the floor of the Lakers team in Los Angeles, is clearly visible.