The CEO of Singapore-based crypto exchange Crypto.com, Kris Marszalek, stated that the company would prove all naysayers wrong about the platform’s purported “trouble,” that it has a strong balance sheet, and it has taken no risks nor is it in trouble.
In a Q&A session broadcast live on Crypto.com’s official YouTube channel, Marszalek clarified that the platform always kept reserves to match every coin users had on it.
“We’ll just go about our businesses as usual and prove all the doomsayers wrong, of which there are many on Twitter right now,” Marszalek said.
“We will prove them all wrong with our actions. We will continue to conduct business as usual. We will continue to provide a safe and secure environment for anyone to use cryptocurrency.”
He stated that the exchange would not engage in any “irresponsible lending products” and that an audited proof of reserves report would be published in the coming weeks.
The AMA (ask-me-anything) came after investors took to Twitter over the weekend to question a $400 million Ether token transfer to another exchange called Gate.io on Oct. 21.
Marszalek tweeted that the Ether had been recovered and returned to the exchange, but this did not calm the market. According to the Wall Street Journal, withdrawals at Crypto.com increased over the weekend following Marszalek’s tweet.
After the company posted its cold wallet addresses online, a user searching through transactions at Crypto.com discovered the Ether movement.
According to Marszalek, Crypto.com had 70 million unique users worldwide and generated $1 billion in revenue in 2021 and 2022.
He claimed that the platform had about $1 billion on FTX earlier this year, but its current exposure was only about $10 million.
When asked why the exchange held 20% of its reserves in the meme token Shiba Inu, or SHIB, Marszalek explained that reserves were a direct one-to-one reflection of client holdings and that SHIB and Dogecoin were extremely popular in 2021.
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