- We will prove people wrong
- Trust was damaged in the past weeks
- We lost nothing on Luna
- $10 million stock in FTX
The collapse of FTX has caused a lot of controversial comments about other Crypto firms around the world. One of the most talked about crypto firms is crypto.com. In response to these and community requests about the state of the firm, Kris Marszalek, CEO of crypto.com, explained that the company is in good hands and the entire crypto space needs to focus on rebuilding the trust the industry has lost.
The last one week has been unstable in the wake of the collapse of FTX as “trust was damaged, if not lost” in the Crypto industry, Kris highlighted. In order to help build that trust back, he added that while normal activities such as trading, withdrawals, and deposits are ongoing at crypto.com, the team is working to provide a full report of their proof of reserve.
The CEO noted that Crypto.com has a business model different from other Crypto firms, including FTX and prides itself as being one of the most regulated crypto firms in the world, leading in compliance, security, and privacy. He added that the model they use is built around charging fees for offering users crypto and fiat-based services.
FTX, Shib, LUNA, and the state of CRO
When asked by the company’s CMO, Steven Kalifowitz, about the custody of users’ assets, Kris explained that crypto.com has a noncustodial DeFi wallet that gives complete control of funds to its about 5 million users.
Kris revealed that while the team had 0% exposure to Luna, crypto.com retrieved about $990 million of $1 billion moved to FTX in the course of a year. He explained that at the collapse of FTX, crypto.com had $10 million, which is not much compared to $1 billion in the embattled crypto exchange.
In response to the $400 million transaction that happened recently, the CEO highlighted that there was no error done and that crypto.com had full control of the fund. For CRO, the native token of the platform, he said that they have never used it as collateral for loans.
The future from now on will be about actions to build the industry, take our bad actors, and help bring more innovative products built on the blockchain, Kris said.