Kris Marszalek, CEO of Crypto.com, announced in a tweet that the popular crypto exchange will make public all balances and cold wallet addresses for major assets within the next 24 hours.
The aim is to demonstrate full transparency in light of the much-publicized recent events concerning another crypto exchange, FTX. To remind readers, FTX’s downfall was spurred precisely by a lack of transparency, when it was revealed that most of its assets weren’t backed by fiat currency or any other cryptos apart from FTX’s own token, FTT. Certainly, investors need this kind of information before putting their trust in any exchange.
The possible bankruptcy of FTX has had another effect on Crypto.com. Namely, the exchange has suspended deposits and withdrawals of stablecoins USDT and USDC on the Solana network, whose total liquidity is mostly in the hands of FTX and its sister-company Alameda Research.
According to another tweet posted by Kris Marszalek, Crypto.com doesn’t want to endanger its users, as FTX’s well-being is a key factor when it comes to Solana-based stablecoins.
Crypto.com’s bid to demonstrate transparency echoes that of Binance. Yesterday, the largest exchange disclosed its holdings, revealing that it possesses, among other coins, Bitcoin (worth some $7.8 billion), Ether ($5.57 billion), USDT ($17.4 billion), and USDC ($607 million). In total, the value of these reserves amounts to some $69 billion.
Additionally, Binance is also set to make public a Merkle tree proof-of-funds. Merkle trees are utilized to store the hash values of users’ assets in “leaf nodes”, which can then be audited to verify the holdings.
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