In accordance 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 trade collapsed. Nonetheless, he acknowledged that on the time of FTX’s collapse, Crypto.com’s publicity to the crypto platform was under $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, not too long ago instructed his followers that when FTX collapsed, a lot of the $1 billion that was despatched to the now-defunct trade platform had been recovered. In accordance with the CEO, Crypto.com’s publicity to FTX was below $10 million when the latter was pressured to file for chapter.
Responding to hypothesis that Crypto.com will be the subsequent crypto trade 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 trade, Marszalek additionally reiterated that his agency’s major focus is serving its 70 million plus shoppers 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 not too long ago admitted to sending digital belongings price over $400 million to Gate.io by mistake, may be the subsequent crypto trade to fall.
As well as, the latest surge within the variety of transactions in addition to studies alleging that Crypto.com had paused withdrawals appeared to lend credence to the rumors. Nonetheless, in his response to studies suggesting the trade 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 implies larger buying and selling volumes which imply extra revenues for us.
Whereas Marszalek admitted that the trade is grappling with a backlog of customer support tickets, he nonetheless emphasised that steps to rectify the state of affairs have been being taken. In regards to the alleged use of Crypto.com’s token CRO as collateral, the CEO mentioned:
We have now 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 little interest in utilizing its token to generate extra earnings.
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