Kris Marszalek, CEO of cryptocurrency exchange Crypto.com, has become the latest crypto company to promise to publish “audited proof of reserves,” amid the downfall of rival exchange FTX.
“We share the belief that crypto platforms should publicly share proof of backup,” Marszalek said, adding that his company “will publish audited proof of backup.”
We share the belief that crypto platforms should be able to share proof of backup and publicly https://t.co/pFc4Pz9nFR will publish audited evidence of reserves.
— Chris Crypto.com (@kris) November 10, 2022
The idea for crypto companies to publish their Proof of Reserve has gained traction after the FTX liquidity fiasco. Binance CEO Changpeng “CZ” Zhao on November 8 also promised to start a Reserve Evidence Audit system to provide public insight into the state of its reserves.
The Crypto.com CEO’s comments came just hours after the exchange temporarily suspended USDC and USDT withdrawals and deposits on the Solana network on Nov. 9.
In an email to users on November 9, which has been circulating on Twitter, Crypto.com reportedly notified users of the “Immediate Suspension of UDSC and USDT Deposits and Withdrawals in Solana.”
In an email, the exchange assured its customers that they can still withdraw USD Coin (USDC) and Tether (USDT) whenever using other supported networks, such as Cronos and Ethereum, suggesting the other name the network has not been affected by “recent industry events.”
– Black Tie Report (@BlackTieReport) November 9, 2022
Cointelegraph reached out to Crypto.com, who confirmed that the news circulating on social media about the suspension of withdrawals and deposits of USDC and USDT in the Solana network was indeed true. The exchange added that “any deposits not received from these two tokens on Solana will be refunded without charge for the next two weeks.” However, they refused to give more depth on the matter.
The exchange added that “any deposits not received from these two tokens on Solana will be refunded without charge for the next two weeks.” However, they refused to give more depth on the matter.
The past 96 hours have seen the crypto market sent into a frenzy due to the collapse of the FTX crypto exchange.
A A surprise turn of events occurred on October 8 when the CEO of Binance shared that his company has “signed a non-binding Letter of Intent, intending to fully acquire FTX.com and help cover the liquidity crunch.”
The CEO added that nothing is set in stone, as it “evaluates the situation in real time” and has the ability to “exit the agreement at any time.”
Less than 48 hours later, the CEO announced that they had pulled out of the deal.
These recent events have had a cascading effect on the market, particularly in relation to FTX and related companies.
On Nov. 9, Cointelegraph reported that Solana (sole) is on track for his worst daily performance log on record, as SOL’s price dropped more than 40% due to its association with Sam Bankman-Fried, founder of crypto-focused hedge fund Alameda Research and cryptocurrency exchange FTX.
Amid the unfolding events, the co-founder of Solana Labs, Anatoly Yakovenko, shared a tweet indicating that Solana was not affected by the unfolding events. He said, “Solana Labs, a US company, has no assets at ftx.com, so we still have a lot of ground, and luckily it’s still a small team.”
Solana Labs, a US company, has no assets https://t.co/nL7jEmgrVTso we still have a ton of ground, and luckily it’s still a small team.
– toly (@aeyakovenko) November 9, 2022
At the time of publication, Solana was trading at around $14.97, down 30.29% over the past 24 hours.