CEO of Crypto.com Kris Marszalek claimed that his company had a “tremendously healthy balance sheet” and wasn’t engaging in the same types of activities that led to FTX’s demise.
In a YouTube “ask me anything” session, Marszalek stated, “We never participate as a company in any risky lending methods, we never assumed any third-party risks.”
Kris Marszalek, also stated that his firm has a stable balance sheet that presents no risk to customers. In the coming weeks, he also promised to release an audited proof of reserves and guaranteed that the company had not used any “irresponsible lending products.”
Following worries that the Singapore-based exchange may be the next to experience a liquidity crisis, the CRO token of Crypto.com has fallen roughly 45% over the previous week. According to data from Nomics, the exchange’s daily volume has decreased from the highs of approximately $4 billion last year to about $284 million this past October, and withdrawals are on the rise as users and investors take their money out of the system.
As he began the AMA, Marszalek dismissed claims that Crypto.com was bankrupt, claiming that customers could deposit, withdraw money, and engage in trading.
“Most importantly, remember that our platform is operating normally. People are trading, making deposits, and making withdrawals. There is essentially nothing unusual going on; it’s just elevated.” Furthermore, according to Marszalek, Crypto.com is the market leader in regulation, having the most registrations and licenses from “tier 1” jurisdictions like the U.S., Singapore, the U.K., and Europe.
The difference between Crypto.com and FTX, according to Marszalek, is that the former uses a business model based on cryptocurrency access, with earnings spent to create a “compliant, safe infrastructure.”
Although these companies are in the same sector, we run them very differently. More than 70 million users have downloaded our app and are using our platform globally. Our business concept is fairly straightforward; we give the public access to digital goods in exchange for a charge.
Marszalek asserted that the business does not take on third-party risks or participate in careless lending practices, and he added, “We do not operate a hedge fund; we do not trade customers’ assets.”