In keeping with the CEO of Crypto.com, Kris Marszalek, his agency had recovered a lot of the $1 billion that had been despatched to FTX when the crypto alternate collapsed. Nonetheless, he acknowledged that on the time of FTX’s collapse, Crypto.com’s publicity to the crypto platform was beneath $10 million. Marszalek additionally claimed that Crypto.com has by no means used its crypto token as collateral.
Crypto.com’s Enterprise Mannequin
Kris Marszalek, the co-founder and CEO of Crypto.com, just lately informed his followers that when FTX collapsed, a lot of the $1 billion that was despatched to the now-defunct alternate platform had been recovered. In keeping with the CEO, Crypto.com’s publicity to FTX was beneath $10 million when the latter was compelled to file for chapter.
Responding to hypothesis that Crypto.com could be the subsequent crypto alternate to face an FTX-style person exodus, Marszalek insisted on Nov. 14 that it has been enterprise as normal at his agency. Talking throughout an ask me something (AMA) session organized by the crypto alternate, Marszalek additionally reiterated that his agency’s major focus is serving its 70 million plus purchasers who largely purchase and maintain crypto belongings.
The Crypto.com boss additionally claimed that his agency’s enterprise mannequin is totally different from the one utilized by FTX.
Surging Transactions and Withdrawal Pause Rumors
As reported by Bitcoin.com Information, FTX’s obvious follow of misappropriating clients’ funds ultimately led to its downfall. Following FTX’s demise, rumors emerged suggesting Crypto.com, which just lately admitted to sending digital belongings price over $400 million to Gate.io by mistake, is perhaps the following crypto alternate to fall.
As well as, the current surge in the variety of transactions in addition to stories alleging that Crypto.com had paused withdrawals appeared to lend credence to the rumors. Nonetheless, in his response to stories suggesting the alternate had stopped withdrawals, Marszalek mentioned:
That is completely not true, we’re working as normal. There’s a heightened stage of buying and selling exercise which suggests greater buying and selling volumes which imply extra revenues for us.
Whereas Marszalek admitted that the alternate is grappling with a backlog of customer support tickets, he nonetheless emphasised that steps to rectify the state of affairs had been being taken. Regarding the alleged use of Crypto.com’s token CRO as collateral, the CEO mentioned:
Now we have by no means used CRO as collateral for a single mortgage in our historical past. Not even as soon as.
Marszalek added that Crypto.com is already operating a easy enterprise that generates first rate revenues and subsequently has no curiosity in utilizing its token to generate extra revenue.
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