Amidst the collapse of one of the world’s biggest crypto exchanges, FTX, Kris Marszalek, CEO of Crypto.com, has answered questions in a livestreamed session on YouTube to provide insight into the financial situation of his company.
Crypto.com’s CEO Answers Questions on Exchanges
In an ‘AMA’ (ask-me-anything) on YouTube, Crypto.com’s CEO Kris Marszalek explained that his exchange, which has the most licenses and regulatory approval, is not in trouble. He maintains that his balance sheet is strong.
Marszalek explained that Crypto.com maintains reserves to match every coin customers hold. He also adds that Crypto.com doesn’t use CRO, its native token as collaterals for loans, unlike FTX.
When asked about his exchange’s exposure to FTX, Marszalek explained that Crypto.com had recovered the $1 billion in stablecoin it moved to FTX. However, it had under $10 million exposure before the implosion.
Unlike FTX, which focused on trading and engaged in illegal practices, Marszalek said his exchange focuses on the retail aspect of crypto and generates revenue from fees and other businesses. He says his exchange will continue operating safely.
Crypto.com Recovered the $400 million Mistakenly Transferred
When asked about the $400 million (in ETH) mistakenly transferred, Marszalek said the funds have been recovered.
Crypto.com will be the only crypto partner of the FIFA World Cup. Marszalek hopes the exchange’s publicity at the event, set to be viewed by billions, will help quell the fear growing in the crypto market. He emphasized that his exchange has pushed for a transparent and regulated market.
On the Flipside
- The funds which were mistakenly transferred caused investors to pull their funds from the exchange. This resulted in its native CRO token plunging by 30%.
Why You Should Care
The live AMA session from Crypto.com aimed to reduce the FUD spreading in the crypto market and prove that the exchange has nothing to hide.
Get the latest in the FTX saga below:
FTX Group Files for Bankruptcy, Sam Bankman-Fried Resigns as CEO
Crypto.com’s world cup push is covered in:
Visa and Crypto.com Launch NFTs for Soccer Fans Ahead of the FIFA World Cup 2022