Crypto.com Caught In The Crossfire

My bad. Didn’t check. My fault. Oops. That’s on me. Sorry about that. Darn. 

Ever sent your crypto to the wrong address? It sucks. But you probably haven’t made a mistake worth $400 million. 

Some poor sap at Crypto.com made a big, big oops. That person accidentally sent 320,000 Ethereum ($ETH.X) to the wrong address. The address was to another exchange, Gate.io. Thankfully, the Gate.io address was a corporate wallet owned by Crypto.com – so it was promptly sent back. But still. That’s a big oops.

The intended recipient was Crypto.com’s cold storage wallet (wallets that are not connected to the internet). Crypto.com CEO Kris Marszalek Tweeted:

Because of FTX’s demise, the crypto community as a whole has been uber-sensitive now to any exchange even hinting that something could be considered sneaky.

Over the weekend, Crypto.com’s $CRO.X took quite a beating, closing nearly -23% on Saturday, falling even further on Sunday to lows not seen since April 2020, but it recovered the great majority of those losses and closed higher. 

CROUSD Daily Chart

To show transparency and show Proof-Of-Reserves, the Crypto.com CEO worked with the blockchain analytics firm Nansen to show Crypto.com’s reserves:

Source: Coindesk & Nansen

Bitcoin ($BTC.X) accounts for close to 31% of Crypto.com’s reserves. The next largest reserve is Shiba Inu ($SHIB.X). According to a Crypto.com spokesperson talking with Coindesk, the reason that Crypto.com has so much Shiba Inu is that “The reason our Proof of Reserves includes Shiba is because we hold customers’ balances 1:1. Thus, our Proof of Reserves are dictated by our customer holdings.”

People have reported on Stocktwits and Twitter that there has been a noticeable increase in withdrawal times over the weekend. Not surprising when you consider Crypto.com’s Ethereum hot wallet averages 6,000 transactions a day, but on Sunday, it experienced 90,000. 

If solvency and liquidity issues pop up with Crypto.com, we’ll be sure to update you ASAP. 🏛️

More in   Crypto

View All

BlockFi Customers Rejoice!

BlockFi’s customers might finally feature a financial comeback, thanks to a deal with FTX and Alameda Research. 😍

How much? Up to $874 million, contingent on court approval. This settlement could be the lifeline for customers left adrift after the 2022 crypto upheaval.

Read It

BlackRock’s Bitcoin ETF Surpasses Silver Trusts with $10 Billion in Assets

When the first gold ETF came out, it took a couple of years to reach $10 billion in AuM (assets under management). How long did it take Blackrock’s $IBIT? 2 months. 😱

Bitcoin spot ETFs have now eclipsed the largest silver trusts regarding assets under management (AuM), setting their sights on surpassing gold trusts next. According to recent data from HODL15Capital, BlackRock’s IBIT has achieved an impressive milestone, amassing an AuM of $10.03 billion, translating to a remarkable year-to-date (YTD) increase of 35.2%.

Read It

You Lucky SOBs

This is such a typical memecoin story (and they pop up quite a bit during bull runs), and this one involved Dogwifhat ($WIF). 🐶

Some dood turned $1,750 into $11.2 million. He bought 5.1 million WIF in November and then spent who knows how many sleepless nights this month figuring out how to cash out on his lottery ticket. 

Read It