Clearing the waters around Crypto.com

Simply put, there has been a lot of FUD surrounding exchanges since the FTX collapse, with a majority seemingly targeting Crypto.com (CDC). This post will hopefully clarify the more common FUD.

As always DYOR and validate any information from third parties.

Most of the FUD can be addressed in two steps:

1. Visit status.crypto.com to view any system outages. When people claim "CDC have stopped withdrawals", its easy to check if that's true.
2. Watch the recent AMA where the CEO Kris Marzalek publicly addresses concerns regarding recent events.

Here's a quick summary:

"CDC have 20% of their reserves in SHIB, isn't that a shitcoin?" (CDC proof of reserves)

Well yes, these are what the users have bought. CDC is an exchange that holds its users funds 1:1 in a reserve. That means if you, the user, buys SHIB they actually store the exact amount of SHIB for you. How crazy is that? (Looking at you FTX) Kris's Response and in the AMA.

"CDC had $1b of users funds in FTX!"

False. Over 2022, CDC transferred a cumulative amount totalling $1B between CDC and FTX. At the time of FTX collapse, CDC only had $10m on the exchange. Kris addresses that here and in the AMA.

"CDC cant afford the hundreds of millions in partnership and sponsorship agreements!"

Take the Crypto.com arena deal worth $700M over 20 years as an example. They don't pay the full amount upfront, rather they pay a small amount every year for 20 years. ($700m/20years = $35m per year estimated). CDC's brand awareness campaigns totals less than 10% of its annual revenue, which exceeded $1b for 2021 & 2022. Kris also discusses this in the AMA. They are also major sponsors of the Qatar 2022 world cup, which will have an estimated reach of over 5 billion people.

"CDC transferred over 320k ETH to the incorrect wallet!"

This is true. Although funds were not lost, they were simply transferred to another whitelisted wallet owned and in control by CDC. Kris address's that in the AMA and in this twitter post.

Crypto.com will be releasing their full audited proof of reserves in the coming weeks.

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Not your keys, Not your Crypto.