In the aftermath of rival exchange FTX’s shocking collapse last week, Crypto.com, the cryptocurrency exchange that the 2022 Qatar World Cup has come under more scrutiny and concern.
Crypto.com CEO Kris Marszalek made an effort to reassure customers during a Monday AMA (ask me anything) on YouTube by stating that the platform is “doing business as usual.”
“People are depositing, people are withdrawing, people are trading, there’s pretty much normal activity just at a heightened level,” Marszalek said in the AMA.
After failing to reach an agreement to be acquired by Binance, the biggest digital asset trading platform in the world filed for Chapter 11 bankruptcy protection shortly after Marszalek’s AMA. FTX was charged with embezzling customer monies after it was claimed that the company had borrowed billions to handle withdrawals.
Users removed a net $3.7 billion worth of Bitcoin and $2.5 billion worth of Ether between Nov. 6-13 as a result of the stunning collapse of the Bahamas-based FTX, which caused a spike in outflows across all major cryptocurrency exchanges.
Marszalek’s AMA took place a day after the exchange unintentionally transferred $400 million worth of the ether cryptocurrency to another crypto exchange, despite his assurances to Crypto.com users that his business does not engage in “any reckless lending practices.” The money was given back to Crypto.com once the error was found. However, the error raised concerns that customer cash on Crypto.com might be in danger.
Marszalek said that Crypto.com will publish an audited “proof of reserves” in an effort to boost transparency, which should allay fears even more.
Following the acquisition of several high-profile sponsorship deals, including the renaming of the Staples Center sports arena to Crypto.com Arena, Crypto.com gained notoriety in 2017. Additionally, the business enlisted Matt Damon for a commercial and is currently a sponsor of the UFC and other sports organizations.
