Crypto.com, a Singapore-based crypto-currency exchange, is facing speculation of financial problems after the collapse of FTX. This uncertainty has led to a drop in its native crypto, Cronos (CRO). However, its CEO was keen to reassure investors.
Crypto.com is not exposed to risk?
Kris Marszalek, the CEO of Crypto.com, answered questions during a pre-announced live AMA. He mentioned that the company will prove all the critics wrong regarding the rumors of financial difficulties. He assured that the company has a strong balance sheet and is not exposed to any risks.
Coingape reported that Crypto.com has experienced a massive withdrawal of investors due to some cryptic transactions. However, the CEO also admitted the mismanagement of $400 million of Ethereum. The transfer was made to the wrong account of another exchange.
However, Marszalek mentioned in the AMA that there has been a lot of speculation on social media over the past two days. He added that the exchange has maintained reserves to support the tokens held by customers. The exchange will continue to do so.
In order to regain investor confidence, he said that audit evidence of the reserves report will be released soon. This will dispel speculation that the exchange is not engaging in “irresponsible lending products“.
ETH recovered by the stock exchange
The CEO of Crypto.com informed that they have sent Ethereum as recovered but failed to calm the crypto market. The price of Cronos, Crypto.com’s native crypto, had fallen by 50% in the last seven days.
He added that at no time were the funds put at risk. This happened three weeks ago and has nothing to do with the current FTX crisis.
Since the AMA, the price of Cronos tokens has jumped to recover from the past drop. The price of CRO has risen by 10% in the last 24 hours. It is trading at an average price of $0.071, at press time.