Kris Marszalek, CEO of Crypto.com, has provided information on his company’s financial situation in a live-streamed session on YouTube in the wake of the collapse of FTX, one of the biggest cryptocurrency exchanges in the world.
CEO of crypto.com responds to queries regarding exchanges. The CEO of Crypto.com, Kris Marszalek, clarified that his exchange, which has the most licenses and regulatory permission, is not difficult during an ‘AMA’ (ask-me-anything) on YouTube. He insists that his financial picture is sound. According to Marszalek, Crypto.com keeps reserves to match each coin consumers own. Additionally, he notes that, unlike FTX, Crypto.com does not utilize CRO, its native cryptocurrency, as collateral for loans.
How Vulnerable Is FTX?
When questioned about the vulnerability of his exchange to FTX, Marszalek said that Crypto.com had recouped the $1 billion in stablecoin it had sent to FTX. Before the implosion, it had less than $10 million in an exposure. In contrast to FTX, which specialized in trading and engaged in unethical activities, Marszalek claimed his exchange concentrates on the retail side of cryptocurrencies. It makes money from fees and other sources. He assures that his trade will continue to run securely.
Crypto.com Recovers the $400 Million Transferred Erroneously. Marszalek said that the $400 million (in ETH) that had been unintentionally transmitted had been reclaimed. The sole cryptocurrency partner of the FIFA World Cup will be Crypto.com. Marszalek is hoping that by promoting the exchange during the event, which billions will see of people, it would be possible to calm the market’s escalating anxiety. He stressed the efforts made by his exchange to promote a regulated and open market.
On the other hand, Investors withdrew their money from the exchange due to the money that was accidentally transferred. Its native CRO token fell by 30% as a result. The goal of Crypto.com’s live AMA was to dispel FUD circulating in the cryptocurrency industry and demonstrate that the exchange has nothing to hide. On the other hand, the FTX Group declares bankruptcy, and CEO Sam Bankman-Fried steps down.