Some Fear Crypto.com Could Become the Next FTX
The AFL says it’s going to continue its partnership with Crypto.com, a famed crypto exchange, even though there are concerns about the space following the collapse of digital trading platform FTX.
Crypto.com Is Raising All Kinds of Questions
The world was shocked in mid-November when one of the largest digital currency exchanges out there came crashing down and was forced into bankruptcy proceedings due to an alleged liquidity crunch. The firm was hit hard with creditors requesting that payments be returned, and it appears many investors have seen their money go up in smoke within a matter of days. It’s been a crazy and rather depressing sight to see, and one that’s likely to haunt the crypto space for some time.
But the world of sports and crypto appears to be staying strong. Proof of that exists in the idea that the AFL is not moving on from its work with Crypto.com. In addition, the CEO of the digital trading platform Kris Marszalek went online to engage in an “ask me anything” (AMA) conversation as a means of keeping people assured that his firm is not heading in a similar direction.
Throughout the event, he commented that FTX has ultimately set the space back “a good couple of years,” though he mentioned that his own Crypto.com is the most “regulated company” in the digital currency sector and that his firm boasts financial licenses in Europe, Canada, Singapore, the UK, and Australia where the AFL is based.
Our platform is performing business as usual. People are depositing, people are drawing, [and] people are trading. We never engaged as a company in any irresponsible lending practices. We never took any third-party risks, we do not run a hedge fund, we do not trade customers assets, [and] we always kept one-to-one reserves.
He further stated that the company’s balance sheet was very strong and that the firm was not likely to face any serious financial issues in the coming future. He commented:
I’ve been saying it for a few years, and what I can say is that we will do what we’ve always done. We will prove people wrong with our actions and not our words. So, in a couple of months, all these guys are going to look bad for throwing allegations that have absolutely no substance.
While he’s confident in the company’s direction, other executives in the space – such as Changpeng Zhao of Binance fame – have stated that things aren’t looking so good given the company recently sent hundreds of millions of dollars in ETH off its exchange.
Telling People to Steer Clear
Zhao stated in a tweet:
If an exchange [has] to move large amounts of crypto before or after they demonstrate their wallet addresses, it is a clear sign of problems. Stay away.
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