Crypto Hotshots 2022 🔥♨️

Twitter Instagram Facebook Facebook Linkedin Youtube Spotify Medium Reddit Telegram Tiktok
Voice of Crypto
  • News
  • Analysis
  • Bitcoin
  • Altcoin
  • Services
    • Content Marketing Services
    • Crypto Influencer Marketing
    • Advertise With Us
Reading: Crypto.Com CEO Answers Crucial Questions About FTX Investment
Share
  • News
  • Analysis
  • Bitcoin
  • Altcoin
  • Blockchain
  • VOC Explained
Reading: Crypto.Com CEO Answers Crucial Questions About FTX Investment
Share
  • bitcoinBitcoin(BTC)$27,707.00
  • ethereumEthereum(ETH)$1,902.64
  • tetherTether(USDT)$1.00
  • binancecoinBNB(BNB)$312.28
  • usd-coinUSD Coin(USDC)$1.00
  • rippleXRP(XRP)$0.52
  • cardanoCardano(ADA)$0.378228
  • staked-etherLido Staked Ether(STETH)$1,902.68
  • dogecoinDogecoin(DOGE)$0.072494
  • solanaSolana(SOL)$21.09
  • Events
  • Videos
  • Podcast
Voice of CryptoVoice of Crypto
Aa
  • News
  • Analysis
  • Bitcoin
  • Altcoin
  • Blockchain
  • VOC Explained
Search
  • News
  • Analysis
  • Bitcoin
  • Altcoin
  • Services
    • Content Marketing Services
    • Crypto Influencer Marketing
    • Advertise With Us
Follow US
Copyright © 2023 Voice of Crypto. All Rights Reserved
Voice of Crypto > News > Crypto.Com CEO Answers Crucial Questions About FTX Investment
News

Crypto.Com CEO Answers Crucial Questions About FTX Investment

Jim Haastrup
Last updated: 2023/03/30 at 6:39 PM
Jim Haastrup Published November 15, 2022 March 30, 2023
Share
Crypto.com

Key Insights

  • According to Marszalek, Crypto.com has a “tremendously strong balance sheet” and isn’t at risk of the problems that plagued and eventually led to the crash and burn of FTX last week.
  • However, crypto.com has recovered all of this, and his exchange only had about a $10 million exposure when FTX went under.
  • In Marzaleck’s words,
  • According to Marszalek, only three coins including two FTX tokens and one securitized token have their withdrawal capabilities on the exchange suspended.

In a youtube “ask me anything” interview on Monday, Kris Marszalek, the CEO of the cryptocurrency exchange Crypto.com reassured customers of his platform of the safety of their funds, after fears of the (potential) ripple effects of the collapse of rival firm FTX swept through the market.

Contents
Key InsightsCrypto.com Is Not Stopping WithdrawalsMoving Foward

According to Marszalek, Crypto.com has a “tremendously strong balance sheet” and isn’t at risk of the problems that plagued and eventually led to the crash and burn of FTX last week.

He goes further to say that the company supplied large-sum stablecoins to the troubled cryptocurrency exchange FTX to fulfill liquidity inside clients’ orders at the time when FTX was still operational. However, crypto.com has recovered all of this, and his exchange only had about a $10 million exposure when FTX went under.

- Advertisement -

In Marzaleck’s words,

“Over a year, $1B was moved to FTX and we recovered all of this. We only had exposure of under $10 million when FTX shut down. And FTX was a trading venue where this is one of the few trading venues with decent liquidity for some of the coins like the ones I mentioned earlier.”

Marszalek said in the interview, that the exchange would not be stopping withdrawals anytime soon.

Crypto.com Is Not Stopping Withdrawals

He made this comment despite the growing backlog of customer service tickets on the exchange. According to Marszalek, only three coins including two FTX tokens and one securitized token have their withdrawal capabilities on the exchange suspended.

- Advertisement -

Addressing the allegations that Crypto.com was using its native token, Cronos [CRO] as collateral for loans, Marzaleck mentioned that Crypto.com has never used it, and has never needed to. He goes further to point out that the exchange has a “very simple business”. This business, he says, is one” that generates a decent amount of revenue”.

“Crypto.com as a company never employs any careless lending techniques. It never runs a hedge fund and never takes any risks with third parties.”

Marszalek says. Customers’ assets are not traded by the business, he continued. “We always keep a 1-to-1 reserve.”

Following the collapse of FTX, Crypto.com experienced a surge in withdrawals similar to those experienced by several other exchanges after it came to light on Sunday, that it “mistakenly” sent $400 million worth of Ethereum to Gate.io, another cryptocurrency exchange back in October.

- Advertisement -

This supposed mistake by Crypto.com, is one of the single largest sparks that led to worries that Crypto.com users’ funds might be at risk.

However, both Crypto.com and Gate.io have since clarified that these funds were transferred in error and were promptly refunded once the mistake was discovered.

Moving Foward

On Sunday, Marszalek mentioned that the company had intended to transfer the assets to its “cold wallet,” but they were instead transferred to a whitelisted corporate account owned by Gate.io by a complete mistake.

“All assets have since been restored to Crypto.com”, says Gate.io, which also claims that the transaction was a result of an “operation error transfer.”

Finally, at the end of the interview, Marszalek responded to users who questioned why almost 20% of the exchange’s reserves are in the memecoin, Shiba Inu. He mentioned that last year, DOGE and SHIB were two of the most bought and traded cryptocurrencies and that people held them longer than all the others.

Because of this, Crypto.com is left with 20% of its reserves as Dogecoin and Shiba Inu

Disclaimer: Voice of crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.

You Might Also Like

5 Top Cryptocurrencies To Watch this Week: MATIC, ARB, CAKE, INJ, RNDR

10 Top Cryptocurrency Exchanges in the USA

Potential Losses for the U.S. in its Cryptocurrency Fight

BIG Catalyst Incoming for the Ethereum (ETH) Price

Crypto Investors Beware! Incoming Pump on ETH-Based Altcoin- RNDR

TAGGED: Crypto Exchange, Dogecoin, Ethereum, Shiba Inu
Share This Article
Facebook Twitter Email Copy Link Print
Previous Article Tron Justin Sun USDD Kucoin and Crypto.com Tokens Plunge After FTX Fall
Next Article Voice of Crypto Binance Binance Reveals Crypto Market Recovery Plan, After Chiliz and Tron
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Binance

Follow US

Find US on Socials
Facebook Like
Twitter Follow
Instagram Follow
Youtube Subscribe

Subscribe to our Newsletter

Get Newest Articles Instantly!

Ledger
techcircus
Popular News
Web3 Shorthand
Web3 Shorthand: A Glossary for Crypto Newbies
MetaZone Secures Funding to Expand the World’s First Tokenized App Platform for the Metaverse
Quick-Tips-To-Avoiding-A-Fake-Crypto-Wallet
Quick Tips To Avoiding A Fake Crypto Wallet

Follow Us on Socials

We use social media to react to breaking news, update supporters and share information

Twitter Instagram Facebook Facebook Linkedin Youtube Spotify Medium Reddit Telegram Tiktok
Voice of Crypto

Voice Of Crypto hits a beat with almost 15 million users, churning out the best news and content in the Web3, crypto and blockchain space

Subscribe to our newsletter

You can be the first to find out the latest news and tips about trading, markets...

Legal

  • Global Events
  • Advertise With Us
  • Privacy Policy

Know Us

  • About Us
  • VOC Team
  • VOC Vigilantes
  • Brands Who Trust Us
  • Contact Us
Copyright © 2023 Voice of Crypto. All Rights Reserved
Welcome Back!

Sign in to your account

Lost your password?