Major crypto exchanges are trying to prepare Proof of Reserve checks. The major Bitcoin exchange that took the first step was Crypto.com. Subsequently, it turns out how many dog-themed chest cryptocurrencies are in the stock’s 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 amid competitors. Bitcoin exchange Crypto.com has taken a proactive step to provide a series of preliminary clarifications. The exchange presented a dashboard of approximately $3 billion in reserves and other assets. He shared wallet addresses with blockchain analytics firm Nansen.
The assets are stated to be Shiba Inu (SHIB), the chest coin built largely 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 Bitcoin (BTC) worth $872 million, representing 31 percent. According to Nansen information, the measure exceeds the chairman altcoin Ethereum. 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 regarding the bet:
The reason our Proof of Reserve includes Shiba Inu is because we keep clients’ balances 1:1. Therefore, our Evidence 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 neatest assets to be the most expensive. However, both SHIB and DOGE have an extremely high market price. It is not surprising that retail-loaded exchanges have a higher concentration of these types of tokens. And regardless, as an exchange, your main source of income will likely be trading prices. So your business model is intact, whether it’s chest coins or more fundamentally solid assets.
Shiba Inu quickly adopted
As we have reported as Koindeks.com; The Shiba Inu (SHIB) emerged through a $1.2 billion transfer to Ethereum founder Vitalik Buterin in May 2021. Subsequently, Buterin sent SHIBs to the India COVID-19 Relief Fund. SHIB is one of the most recognizable 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 information 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 in the wake of the precious liquidity crisis. The White House has called for further regulation of the cryptocurrency industry. There are currently inaccessible assets on the FTX platform, potentially costing billions of dollars. 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, the market cap soon rose to over $41 billion. As a result, it provided a greater market cap than many companies in the S&P 500.