Crypto.com Cronos (CRO) token price is consolidating above what may be its last remaining support. CRO is posting a monthly decline of 45%, putting it near the bottom of a declining parallel channel that has served as support for much of the year.
After the FTX cryptocurrency exchange disaster, attention has now turned to competitor Crypto.com. According to a Reuters report On Tuesday, regulators launched investigations following the staggering implosion of FTX, one of the world’s largest cryptocurrency exchanges, and rival exchanges are now trying to reassure nervous investors that their funds are safe. .
Concerned about the severity of the repercussions created by this shock wave, investors are wondering whether or not the cryptocurrency trade hides other secrets. The virtual stratosphere is buzzing with rumours.
CRO plunges as Crypto.com makes major mistake
In the meantime, we are zooming our lens on CRO. Crypto.com’s native currency lost almost a quarter of its value following news that the exchange transferred $405 million to the wrong recipient, setting off alarm bells among crypto watchers.
Crypto.com CEO Kris Marszalek said on Twitter that the transaction was a mistake, while a company representative told Yahoo Finance that the funds were intended for an offline cold storage crypto wallet, but were instead sent to Gate.io, a crypto exchange affiliated with FTX and Sam Bankman-Fried.
Crypto.Com Exchange CEO Kris Marszalek. Image: Coincu News
At least $45 million was withdrawn from Crypto.com after investors called back on Friday, according to the Wall Street Journal bankruptcy deposit of the competing exchange FTX.
Crypto.com is facing a sell-off in its plummeting Cronos token, trading at $0.076870 and down 42% in the past week, according to figures from data firm CoinGecko . Cronos has lost nearly 93% of its value since hitting an all-time high of $0.965407 on November 24 last year.
Will Crypto.com crash like FTX did?
There are widespread rumors that Crypto.com could be the next cryptocurrency company to shut down due to a lack of liquidity. However, according to Marszalek, there is no need to worry because the company is “solvent”.
Marszalek said the following in an AMA (ask me anything) posted on Twitter on Sunday:
“Our platform is operating as usual…People depositing, people withdrawing, people trading, there’s pretty much normal activity just at a high level.”
“We expect cryptocurrencies in general to continue to fluctuate following the continued impact of the bear market and now compounded by the ripple effect caused by FTX,” TheStreet quoted the CEO as saying.
Marszalek also pointed out that they have an “extremely strong balance sheet” and do not operate hedge funds. “We do not trade client assets. We have always had 1 to 1 reserves,” the CEO explained.
CNBC estimates that Crypto.com has 70 million users worldwide and an annual revenue of $1 billion in 2021 and 2022.
The exchange made noise in 2021 for high-profile marketing partnerships, including the renaming of the Los Angeles Staples Center to Crypto.com Arena and an ad featuring Hollywood actor Matt Damon, the report adds.
Crypto total market cap at $801 billion on the daily chart | Featured image from Seeking Alpha, Chart: TradingView.com