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 alternate 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, just lately instructed his followers that when FTX collapsed, a lot of the $1 billion that was despatched to the now-defunct alternate platform had been recovered. In accordance with the CEO, Crypto.com’s publicity to FTX was beneath $10 million when the latter was compelled to file for chapter.
Responding to hypothesis that Crypto.com stands out as the subsequent crypto alternate to face an FTX-style person exodus, Marszalek insisted on Nov. 14 that it has been enterprise as regular at his agency. Talking throughout an ask me something (AMA) session organized by the crypto alternate, Marszalek additionally reiterated that his agency’s main focus is serving its 70 million plus shoppers who largely purchase and maintain crypto property.
The Crypto.com boss additionally claimed that his agency’s enterprise mannequin is completely different from the one utilized by FTX.
Surging Transactions and Withdrawal Pause Rumors
As reported by Bitcoin.com Information, FTX’s obvious apply of misappropriating prospects’ funds finally led to its downfall. Following FTX’s demise, rumors emerged suggesting Crypto.com, which just lately admitted to sending digital property price over $400 million to Gate.io by mistake, could be the following crypto alternate to fall.
As well as, the latest surge within the variety of transactions in addition to experiences alleging that Crypto.com had paused withdrawals appeared to lend credence to the rumors. Nonetheless, in his response to experiences suggesting the alternate had stopped withdrawals, Marszalek stated:
That is completely not true, we’re working as regular. There’s a heightened degree of buying and selling exercise which suggests greater buying and selling volumes which imply extra revenues for us.
Whereas Marszalek admitted that the alternate 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 stated:
Now we have 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 working a easy enterprise that generates first rate revenues and subsequently has little interest in utilizing its token to generate extra revenue.
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