Crypto.Com Experiences Mass Withdrawals, Is CRO the Next FTT?
The past weekend was no less than a nightmare for the crypto space, as market participants and influencers went against Crypto.com. Similar to that of FTX, Crypto.com also had huge CRO and SHIB in their reserves which created huge panic within the market. The rounds of the platform facing liquidity issues quickly circulated within the space, due to which the CRO price was very badly affected.
It all began when the platform accidentally transferred nearly 400 ETH from Crypto.com to the Gate.io wallet a fortnight ago. While the CDC stated that these tokens had to be sent to their cold wallet, they were transferred to a whitelisted corporate address. Meanwhile, many believed that it was just another coverup for the proof-of-reserve with Changphang Zhao.
On the other hand, the outgoing transactions spiked high on CDC with more than 20K while the incoming transaction maintained a single-digit value
Meanwhile, the CDC has still not undergone full scrutiny as $1 billion is claimed to have been sent to FTX but turns out to be an actual exposure of only $10 million. However, the founder cleared up the claims and said that the platform has very little exposure to FTX and is used in trading venues to hedge customers’ trades. According to the CDC founder Kris Marszalek, Coinbase also has $15 million stuck at FTX for the same reason.
As a result, the platform recorded huge outflows of more than 90,000 Ethereum transactions against its normal range of 6,000 to 6,500 transactions per day. However, the crypto influencers do believe the CRO price may also follow the fate of FTT and do not appear to be convinced with the reserves of more than $2 billion, having nearly 34% in BTC and 21.56% in SHIB in their portfolio.
Security has been in the spotlight in recent times, as the recent episode illustrates the normal routine of crypto exchanges. Moreover, it highlights the point when the market participants are quite sure about the project and when they fall into FUD & quickly withdraw.Source