Crypto.com CEO Kris Marszalek Says Their FTX Exposure Is Limited To $10 Million
Expect a tough crypto winter, but Crypto.com won’t go anywhere, CEO Kris Marszalek said in a live interview held on YouTube channel.
In this week, Crypto.comCRO token of yes nearly 45% off because of concerns that the Singapore-based exchange will be the next exchange to face a liquidity crisis. The exchange’s daily volume has dropped from last year’s high of around $4 billion to around $284 million this past October, according to data from Nomicsand withdraw money on my way back when users and investors withdraw their funds from the platform.
During the interview, Marszalek reiterated that the exchange has a strong balance sheet and said its exposure to FTX is capped at $10 million.
“We recovered $990 million from FTX,” said Marszalek, pointing out that capital flow between exchanges is a necessary part of the business.
an audit of Crypto.com is in progress, but it will take some time. Auditing firms “do not operate at the speed of crypto,” he said, emphasizing that Crypto.com and both industries need complete transparency to move forward.
He reiterated that the withdrawal is working as expected. The only stop involved GALA, SRM and Ray.
“SRM has a strong connection with FTX,” he said.
Marszalek said that the CRO, Crypto.comtoken of, has never been used as collateral for a loan, unlike relationship between FTX and Alameda and tokens of FTX, FTT.
“We will never raise capital,” he added, saying the business is cash-flow positive.
One of Crypto.comHis more controversial move was to sponsor the stadium, at an attractive price. There are questions about how to be effective The whole thing is like a sales funnel. Marszalek says it’s a worthwhile investment, while reminding people that contracts are paid out annually.
“We pay a small amount annually, which is about 10% of our revenue. This is not crazy compared to other companies,” he said. “It is impossible to grow to 70 million users without investing in brand awareness.”
Partly because the market does not believe in Crypto.com possibly stemming from a recent exchange $400 million incidentwhere it accidentally sent ether to an account at an exchange called Gate.io. It was the second time the company mistakenly transferred millions of dollars. In August, it was revealed the exchange sent $10.5 million to a woman in Melbourneand took seven months to notice.
Marszalek explained that all addresses that transfer these scales are whitelisted and approved. The destination address is Crypto.comcompany account at Gate.ioand the money was returned later Gate.io increase the daily transfer limit of the corporate account.
“The funds are not at risk of being lost,” says Marszalek. “The system will not allow us to send money where it cannot be recovered.”
While some on cryptocurrencies Twitter speculated that this was part of a reinforcement plan Gate.ioheld before proof of reserve was published, Marszalek said this was not the case.
For Crypto.com‘ critic Marszalek says he’s eager to prove them wrong with actions and words.
“Their allegations are baseless,” he said.
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