After the crisis in FTX, the rumors continue. Now, another Bitcoin exchange is facing the claims that it will go bankrupt.
Another Bitcoin exchange is facing a crisis!
In a BUT session on Monday, Bitcoin exchange Crypto.com CEO Kris Marszalek clears FUD surrounding the crypto exchange’s liquidity woes following FTX’s filing for bankruptcy. Marszalek echoed his earlier statement of strong balance sheet and finite 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 swift BUT announcement on Nov. 14 to clean up the liquidity surrounding FUD on the crypto exchange. FTX’s crisis damaged investor confidence. However, if something happens again, it will be even more difficult to recover. 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.
In this middle, the exchange announced the cryptocurrencies in cold wallet addresses. It is expected to be checked in March next year. However, the CEO said in his statement:
We will prove all of us wrong with our actions. We will continue to work as we always do. We will continue to be the faithful and faithful place where everyone can access crypto.
CEO asked about resources in reserves
Crypto.com CEO said that many of the revenue comes from prices on fiat exchange and crypto trading, and others come from merchants accepting 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 on crypto exchanges ever since the crash. He also compared the crypto winter to the crypto fall in 2018. He also mentioned the benefits of partnership with FIFA.
Bitcoin exchange altcoin CRO loses price after arguments
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 trading at $0.070, up over 7% in the last 24 hours.
According to reports, Crypto.com saw a massive pullback from investors over the weekend as the CEO of the company, Kris Marszalek, admitted to mismanaging the $400 million process. He stated that the transfer was sent to an account with the wrong type on another exchange.
Twitter users marked a heavy process of moving Ethereum on October 21, 2022 at the cost of $400 million. As evidence, they highlighted some other transfers in the middle of other smaller platforms and exchanges. In the middle, Marszalek assured that this was done by accident and the tokens were recovered. However, the Crypto.com CEO’s comments still failed to gain the trust of investors. The price of the local coin, Cronos, has fallen by 50 percent in the last 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 their CEO will go live on YouTube to answer all questions and speculations about the processes 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 activity levels. However, he argued that the assets matched exactly with the customer deposits. He added that fluctuations in deposit and withdrawal activities do not affect our service level.
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 process volume increased by 175% to $255 million. Whale alert reports that 200 million CRO tokens were added by a whale wallet in a single process. 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 problems after the collapse of FTX. This uncertainty led to a decline in the local cryptocurrency Cronons. But its CEO stepped forward to reassure investors.