Amid the demise of rival exchange FTX, Kris Marszalek, CEO of cryptocurrency exchange Crypto.com, has become the latest cryptocurrency company to promise to publish “audited proof of reserves.”
According to Marszalek, his company “will be publishing its audited proof of reserves,” adding that they “share the belief that it should be necessary for crypto platforms to publicly share proof of reserves.”
Crypto.com CEO stresses that transparency is more important
After the FTX liquidity debacle, the notion of crypto companies publishing their proof of reserves has gained traction. On November 8, Binance CEO Changpeng “CZ” Zhao also promised to launch a Proof-of-Reserves audit system to inform the public about the condition of their reserves.
“This is a critical moment for the entire industry. Transparency is more important than ever, and safety and security of users and funds remains the priority. It requires full and collective commitment.”
The CEO of Crypto.com made his remarks just hours after the exchange on November 9 temporarily stopped accepting deposits and withdrawals of USDC and USDT on the Solana network.
According to reports on Twitter, Crypto.com informed users of an “immediate suspension of UDSC and USDT Deposits and withdrawals on Solana” in an email sent to users on Nov. 9.
The exchange suggested that other named networks had not been impacted by “recent industry events” by assuring its customers in the email that they were able still to withdraw USDC and USDT at any time using other assisted networks, such as Cronos and Ethereum.
“Any unreceived deposits of these two tokens over Solana will be refunded without a fee for the next two weeks,” the exchange continued. They chose not to go into greater detail, though.
Due to the collapse of the cryptocurrency exchange FTX, the cryptocurrency markets have been in a frenzy for the past 96 hours.
Changpeng “CZ” Zhao, the CEO of Binance, announced plans to liquidate all of the company’s holdings in FTX Token, the native token of rival exchange FTX, on November 6. This sparked a bank run and caused the price of Binance’s FTT token to crash.
On October 8, the Binance CEO revealed that his company had “signed a non-binding Letter of Intent, attempting to fully procure FTX.com and help offset the liquidity crunch.” This was a surprising turn of events.
The CEO went on to say that nothing was final because they could “pull out of the deal at any time” and were “assessing the situation in real-time.” CZ declared they had completely backed out of the deal less than 48 hours later.