1 year ago
According to the CEO of Crypto.com, Kris Marszalek, his steadfast had recovered overmuch of the $1 cardinal that had been sent to FTX erstwhile the crypto speech collapsed. However, helium acknowledged that astatine the clip of FTX’s collapse, Crypto.com’s vulnerability to the crypto level was beneath $10 million. Marszalek besides claimed that Crypto.com has ne'er utilized its crypto token arsenic collateral.
Crypto.com’s Business Model
Kris Marszalek, the co-founder and CEO of Crypto.com, precocious told his followers that erstwhile FTX collapsed, overmuch of the $1 cardinal that was sent to the now-defunct speech level had been recovered. According to the CEO, Crypto.com’s vulnerability to FTX was nether $10 cardinal erstwhile the second was forced to record for bankruptcy.
Responding to speculation that Crypto.com whitethorn beryllium the adjacent crypto speech to look an FTX-style idiosyncratic exodus, Marszalek insisted connected Nov. 14 that it has been concern arsenic accustomed astatine his firm. Speaking during an ask maine anything (AMA) league arranged by the crypto exchange, Marszalek besides reiterated that his firm’s superior absorption is serving its 70 cardinal positive clients who mostly bargain and clasp crypto assets.
The Crypto.com brag besides claimed that his firm’s concern exemplary is antithetic from the 1 utilized by FTX.
Surging Transactions and Withdrawal Pause Rumors
As reported by Bitcoin.com News, FTX’s evident signifier of misappropriating customers’ funds yet led to its downfall. Following FTX’s demise, rumors emerged suggesting Crypto.com, which precocious admitted to sending integer assets worthy implicit $400 cardinal to Gate.io by mistake, mightiness beryllium the adjacent crypto speech to fall.
In addition, the caller surge successful the fig of transactions arsenic good arsenic reports alleging that Crypto.com had paused withdrawals seemed to lend credence to the rumors. However, successful his effect to reports suggesting the speech had stopped withdrawals, Marszalek said:
This is perfectly not true, we are operating arsenic usual. There is simply a heightened level of trading enactment which means higher trading volumes which mean much revenues for us.
While Marszalek admitted that the speech is grappling with a backlog of lawsuit work tickets, helium nevertheless emphasized that steps to rectify the concern were being taken. Concerning the alleged usage of Crypto.com’s token CRO arsenic collateral, the CEO said:
We person ne'er utilized CRO arsenic collateral for a azygous indebtedness successful our history. Not adjacent once.
Marszalek added that Crypto.com is already moving a elemental concern that generates decent revenues and truthful has nary involvement successful utilizing its token to make much income.
What are your thoughts connected this story? Let america cognize what you deliberation successful the comments conception below.
Terence Zimwara
Terence Zimwara is simply a Zimbabwe award-winning journalist, writer and writer. He has written extensively astir the economical troubles of immoderate African countries arsenic good arsenic however integer currencies tin supply Africans with an flight route.
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