Crypto.com has announced that it will be making public evidence of its audited reserves. Kris Marszalek, CEO, tweeted today that honesty is more vital than ever, given the current state of the industry. He has remarked that the company is of the opinion that crypto exchanges should be required to disclose their reserve funds to the public. His statement obviously did not come as a surprise.
FTX’s downfall, impending market implosion and Crypto.com’s response
The announcement comes as one of the top crypto exchanges, FTX, continues to weather a severe storm. Crypto exchanges are coming under increasing pressure following FTX’s meltdown this week. There is widespread concern that a market wipeout is imminent. As a result, many investors have become hesitant to maintain their exposure to cryptocurrencies. There is a good chance that cryptocurrency investors will quit centralized exchanges in the months ahead.
Meanwhile, several exchanges will be working to ease the concerns of their depositors by making their audited financials more readily available. It’s reasonable that Crypto.com would wish to head off rumours about its financial health, as no exchange can withstand panic-driven large withdrawals. As the crypto market winter has dragged on for so long, Crypto.com’s status has been the subject of some conjecture in recent weeks.
One of the main topics of discussion is the fact that the corporation spent hundreds of millions of dollars on flashy headline-grabbing marketing deals. However, the market started going downhill almost immediately thereafter. Furthermore, regulators are likely to come down hard on exchanges following the latest market haemorrhage.
However, it appears like Crypto.com is ready for further scrutiny since the company has received multiple licenses from authorities in major markets around the world. In any case, the collapse of FTX will undoubtedly lead to stricter rules and more difficult operating conditions for cryptocurrency exchanges.