When the FTX pump was at its peak, everyone started to see if other centralized exchanges had the same error. First, they looked at Binance’s treasury of $74.5 billion. Then, they looked at crypto.com and saw something very strange.
Nowadays, the token allocation of crypto.com has 3 very important tokens in its token allocation: Bitcoin (33%), Ethereum (17%), USDT (5%), CRO (3%), and SHIB (20%). Discover the risks this has for the platform and the industry.
Crypto.com is Getting a Lot of FUD by Influencers
For any centralized exchange, it is very dangerous that almost 30% of the tokens its customer deposit are risky. Certainly, the CEO of Crypto.com confirmed that those tokens are customer deposits made in 2021.
But as we explained in EP35 last year, lot of people bought $SHIB & @kris confirmed these were user deposits. If @cryptocom had converted those tokens, then it would have been a concern. Not the fact that they maintained it 1:1 as it is. See Kris response. (4/12) pic.twitter.com/SNfSCe0cxy
— Anand Chennai2London (@chennai2london) November 13, 2022
Because of this, many crypto influencers started to attack the exchange and then deleted their tweets. However, some of them apologized and others took a long time to do it. This made a very big wave of rumors that made lots of users start to withdraw their money. Massive layoffs. However, this was not the only strange thing that happened here.
Why Crypto.com Sent 320,000 ETH to Gate.io in October 2022?
Another very curious fact happened on crypto.com. In October 2022, the exchange sent 320,000 ETH to Gate.io. But that was not all, 5-7 days later, 285,000 ETH was sent back to crypto.com, even when they said that all their user’s funds are held offline in cold storage. Hours later, crypto.com said that it was a mistake. However, users were very scared that they were having another FTX’s case. This problem was too fresh not to think about it.
And why https://t.co/bVgf3bBSGR would send back to https://t.co/2vZHyCacXG 285K ETH 5-7 days later? pic.twitter.com/GhH6QGXntd
— Conor (@jconorgrogan) November 12, 2022
On this occasion, for now, there is no sign that crypto.com is doing similar things that FTX did. It is not their fault that their users are Shiba Inu speculators. It is quite another thing if the exchange’s internal portfolio has that same proportion.
We will continue to provide more news on this topic.
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