20% Of Crypto.com Reserves Are On This Meme Coin – Bitcoin (BTC/USD), Ethereum (ETH/USD)
Kris Marszalek, CEO of cryptocurrency exchange, Crypto.com, tweeted on Friday that the company is working with Nansen to create a simple dashboard to show “a full audited proof of reserve.”
Nansen tracked all wallets related to Crypto.com to show this dashboard view of the Crypto.com reserve. As Marszalek pointed out, the reserve does contain quite a bit of Bitcoin BTC/USD and Ethereum ETH/USD, but if you look closely, you can see another well-known token playing a prominent role.
The majority (31%) of the reserve is held in Bitcoin. However, they hold nearly $600 million (21.95%) in Shiba Inu SHIB/USD, a highly speculative ETH-based meme token. SHIB tokens are the second largest category in reserve.
In addition to this controversy, a twitter user noticed that Crypto.com transferred by mistake the majority of its ETH holdings to Gate.io instead of to their own cold wallet.
It was supposed to be a move to a new cold storage address, but was sent to a whitelisted external exchange address. We worked with Gate team and the funds were subsequently returned to our cold storage. New process and features were implemented to prevent this from reoccurring.
— Kris | Crypto.com (@kris) November 13, 2022
We respect Crypto.com’s desire to stay ahead of the wave of skepticism toward exchanges that could follow FTX Exchange’s catastrophic decline. It is a good time for all crypto projects to make sure they are keeping a clean house and maintaining transparency. Even if disclosure might raise questions of its own.