Kris Marszalek, the chief executive officer of Crypto.com, said that the business possesses at least $4.4 billion in assets.
In an effort to quash bankruptcy fears, Kris Marszalek posted Crypto.com’s reserve information. According to Marszalek, the corporation possesses a total of around $3 billion worth of Bitcoin, Ethereum, and other crypto assets.
He emphasised that this is “just a percentage of our reserves” and that a Proof of Reserves audit is presently underway, with the public disclosure, including the publishing of cold wallet addresses, forthcoming.
At current prices, the stated reserves amount to around $4.4 billion in total dollars. As a result of FTX’s demise, crypto platforms are under increased pressure to declare their asset holdings. The rationale behind this is to offer more transparency and balance anxieties over liquidity constraints in the market at the current moment.
Multiple key exchanges, including Binance, Huobi, OKX, and KuCoin, have agreed to issue Proof of Reserves over the next few days and weeks.
In regard to this, Binance CEO Changpeng Zhao (CZ) discussed fractional reserve accounting and the overstatement of assets by cryptocurrency exchanges on November 8. He stated that the industry should not adhere to the banking sector’s norms.
Binance will shortly reveal the company’s Merkle Tree Proof of Reserves, according to CZ. Merkle Trees are a cryptographically verified data structure. Presumably, this method of releasing Proof of Reserves will provide an unalterable audit trail.
Glassnode data indicated that Crypto.com’s Bitcoin balance was around 53,000 BTC, corroborating Marszalek’s allegation. However, their holdings surged to this level soon before the incomplete report was provided.
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