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The freezing winter of crypto and the downfall of the FTX empire have hit the entire industry. As confidence in CEXs dwindles, CEOs of the various platforms have been quick to try to allay their customers’ fears.
Crypto.com has been in the social media spotlight for this exact reason. Following an AMA from its CEO, the exchange sent an email to its clients assuring everyone that their funds are safe and available for withdrawal or trading 24/7.
Funds are safe at Crypto.com
According to an email obtained by CryptoPotato with the title “Industry leader in security, compliance and safety”, Crypto.com assures its 70 million customers that despite the “difficult week”, the platform form is safe and has regulatory approval from several countries. around the world as a sign of its commitment to transparency.
In the email, Crypto.com recounts five key points that should reassure its customers during the current storm in the industry.
First, they ensure that client funds are held 1:1 in secure reserves. They also promise to be able to guarantee that users will have their funds available when they want them.
The Crypto.com team further explains that as a sign of transparency, they have shared the addresses of their cold wallets so that users and interested parties can perform proper analysis.
Tied to this point, they claim to be working on delivering their reserves proof that they expect it to happen as soon as possible.
Additionally, Crypto.com has approval from regulators in 14 countries around the world, including the United States, Canada, United Kingdom, Japan, and Brazil.
Finally, they claim to engage in the financial education of their customers and publish periodic guides with information on how to increase the security of funds.
CRO recovers after a major crisis
The FTX crash hit Crypto.com hard, especially since shortly after it was revealed that the exchange had sent 320,000 ETH in funds to rival exchange Gate.io just before the latter publishes its proof of reserves. Crypto.com CEO Kris Marszalek claims it was a mistake and the funds were returned, although the fact that they received a lesser sum (285,000 in ETH) raised suspicion.
This generated a sharp decline in the price of CRO, the exchange’s native cryptocurrency which hit yearly lows in the early hours of Monday morning, hitting $0.0564 on Coinbase, according to data from Tradingview.
The CEO’s AMA and mass email appear to have worked in favor of the company as the token has recovered around 30% of its low, trading around $0.0746 at the time of writing. However, it is still more than 86% below the price it had at the start of the year: around $0.5574.
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