After FTX’s bank run, all cryptocurrency exchanges have been under a microscope by the crypto community. From Binance to Crypto.com, all exchanges are trying to be as transparent as possible by making everything regarding their users’ funds public. Of course, they are doing so without violating any individual’s privacy. Binance is proving itself as the leader of the crypto industry by ensuring that everything is transparent. They recently made their cold wallet holdings public and even topped up their Secure Asset Fund for Users (SAFU) to $1 billion. Following their example, Crypto.com did the same, with Kris Marszalek, the CEO of the company, tweeting the exchange’s “Proof of Reserve.” Nevertheless, this tweet caused a bit of FUD in the market because the exchange’s second-biggest reserve asset was Shiba Inu (SHIB).
Out of a total of $2.94 billion in its reserves, Crypto.com holds around $540 million in SHIB. This means that 19.8% of their whole reserves are in SHIB. As most of you may know, Shiba Inu is a memecoin and its price highly depends on speculation. For a major cryptocurrency exchange such as this one to hold that big of a stash on SHIB is scary. All the FUD caused by this and the “accidental” transaction of $400 million caused the price of $CRO to fall tremendously. This cryptocurrency lost 40% of its value in just a few days. What makes this whole scenario even scarier is the fact that tons of Crypto.com users are experiencing withdrawal delays.
Crypto.com Is Experiencing Slow Withdrawal Processing
There are many claims circulating around Twitter that Crypto.com users are experiencing slow withdrawal processing. Some influential individuals on crypto Twitter claim that they have been waiting for more than 24 hours for a single transaction. Such delays are common when the users are notified in advance. However, the company did not do any official statement regarding such an issue.
The Chainsaw, a Web3 newspaper, reports that nearly 90,000 unique transactions went through in just a few hours at Crypto.com. According to them, this could be a signal of a potential bank run on Crypto.com. To put these speculations down, Kris went on an AMA live video. There, the CEO of Crypto.com made sure to let everybody know that the crypto exchange has a strong balance sheet. He was also asked about FTX and Crypto.com’s exposure to the now-bankrupt exchange. According to him, Crypto.com’s exposure to FTX is minimal. Data says otherwise, however. Having such a high number of withdrawals and a slow processing time suggests that this exchange’s users are running to get their holdings out of the exchange.