Following the announcement by the CEO of Crypto.com that it will adopt proof-of-reserves in light of the failure of rival exchange FTX, Cronos (CRO), the exchange’s native token, falls by roughly 21.73% in 24 hours.
Data from Coinmarketcap shows that the token’s price dropped in a single day from an intraday high of $0.08003 to a low of $0.05806. The token’s most recent seven-day chart likewise reveals a significant loss of more than 52.57%. However, the price is currently trading at $0.05838.
On November 8th, Changpeng “CZ” Zhao, the CEO of Binance, announced his intention to launch a Proof of Reserves audit system to provide information about the status of the company’s reserves to the general public.
Following the FTX liquidity disaster, there has been increased interest in the concept of crypto firms publishing their Proof of Reserves. On November 10th, Crypto.com CEO Kris Marszalek also stated that they believe crypto platforms should be required to provide proof of reserves and that his firm will be disclosing its “audited proof of reserves.”
The exchange’s CEO made this statement a few hours later, after temporarily suspending USDC and USDT withdrawals and deposits on the Solana network on November 9th.
Crypto.com Holds 1.2 Billion Of Cronos (CRO)
Analytics provider Lookonchain on November 13th published an analysis of Crypto.com’s wallets. They revealed that the assets held by the 6 BTC wallets and the 5 Ethereum wallets of Crypto.com amount to $2.68 billion (51,836 BTC, about $857 million, and 364,969 ETH, or $446 million).
The exchange has around 58 trillion Shiba Inu, or $531 million, more than Ethereum, which is 20% of total assets. It also has about 1.2 billion Cronos (CRO), about $80 million.
Moreover, Lookonchain highlighted that 60% of Crypto.com’s assets are BTC/ETH/USDT/USDC/DAI/BUSD assets worth $1.6 billion, while the remaining 40% are low liquidity assets.
The data provider considered it strange that the exchange took withdrawals of 210 million USDT from Binance and 50 million USDC from Circle before the CEO of the exchange, Kris, announced reserves.
Additionally, the data provider also warned that:
If you have funds on Crypto.com, please pay attention to the safety of your funds.
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