Crypto

AFL backs Crypto.com partnership amid fears of cryptocurrency meltdown

The AFL is sticking to its Crypto.com partnership amid fears the company could be caught in a market spiral after the collapse of FTX.

Last week, FTX, one of the largest cryptocurrency exchanges in the world, filed for bankruptcy after the value of its cryptocurrency crashed, triggering the crypto equivalent of a bank run, with investors seeking to withdraw their funds from the platform.

Company co-founder Sam Bankman-Fried resigned last week saying he had “fucked up”as his reported wealth fell from $16 billion to $3.

The collapse has already had implications for the broader cryptocurrency industry, with the value of Bitcoin dropping from $20,000 to $16,600 since the news broke. experts predicted the collapse of FTX will make it more difficult for the wider sector to recover from recent falls.

Before FTX filed for bankruptcy, sponsorship deals between esports and cryptocurrency companies exploded.

Mercedes F1, Miami Heat and the International Cricket Council have all suspended their sponsorship deals with FTX following the company’s troubles.

In Australia, the AFL sign a five-year deal with Singapore-based Crypto.com earlier this year. It included sponsorship deals with four AFL clubs, and Crypto.com became the “official cryptocurrency exchange and cryptocurrency trading platform” for the AFL and AFLW.

An AFL spokesman told Guardian Australia there had been no changes to the partnership.

The Crypto.com CEO dismissed suggestions that his company could suffer the same fate as FTX.

Kris Marszalek, in an impromptu “ask me anything” on YouTube on Monday, said the collapse of FTX set the industry back “a good few years” in terms of reputation, but said Crypto. com was “the most regulated company”. in the industry, with licenses or regulated entities in Europe, UK, Canada, Singapore and Australia.

“Our platform is operating as usual,” he said. “People deposit, people draw, people exchange.”

He said the business practices that Crypto.com engages in are very different from those alleged about FTX.

“As a company, we have never engaged in irresponsible lending practices,” he said. “We have never taken third party risk, we do not manage hedge funds, we do not trade client assets, we have always maintained individual reserves.”

He said Crypto.com had an “extremely strong balance sheet” and would prove people who claimed the company was in trouble wrong.

“I’ve been saying this for a few years and what I can say is we’ll do what we’ve always done – we’ll prove people wrong with our actions not our words,” he said. .

“So in a few months all of these guys are going to look really, really bad for throwing out allegations that have absolutely no substance.”

Crypto.com has faced concerns over erroneous transactions over the past few months. It was seeking to recover funds from a couple in Australia after the company accidentally sent them $10.5 million instead of a $100 refund.

Last week, the company said it accidentally transferred $404 million from Ethereum to a wallet linked to the Gate.io crypto platform. The currency has since been recovered.

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