Chris Marsalek, CEO of cryptocurrency exchange Crypto.com, has become the latest industry executive to pledge to adopt a “audited Proof of Reserves” mechanism to ensure the security of assets under the company’s management amid the collapse of rival exchange FTX.
“We share the belief that it is necessary for cryptocurrency exchanges to publicly share Proof of Reserves,” Marszalek said, adding that Crypto.com would “publish audited Proof of Reserves.”
We share the belief that it is essential for crypto platforms to share Proof of Reserves publicly and https://t.co/pFc4Pz9nFR will publish our audited Proof of Reserves.
– Chris | Crypto.com (kris) November 10, 2022
We share the belief that it is essential for cryptocurrency platforms to share proof of reserves publicly, and Crypto.com will publish its audited proof of reserves.
– Chris | Crypto.com (kris)
The idea of cryptocurrency firms publishing their own booking guides gained traction after the FTX liquidity crisis. On November 8, Binance CEO Changpeng “CZ” Zhao also pledged to implement a Proof of Reserves audit system to provide the public with information about the status of the assets under management on the exchange.
The Crypto.com CEO’s comments came just hours after the exchange temporarily suspended USDC and USDT deposits and withdrawals on the Solana Network on November 3rd.
In an email sent to platform users on November 9 that circulated on Twitter, Crypto.com notified users of the “immediate suspension of UDSC and USDT deposits and withdrawals on Solana.”
In the email, the exchange assured its customers that they could still withdraw US Dollars (USDC) and Tether (USDT) at any time using other compatible networks such as Cronos and Ethereum, indicating that these networks have not been affected by “recent industry” events.
—BlackTieReport November 9, 2022
When Crypto.com suspends all deposits and withdrawals via #Solana, something is clearly not right… #cryptocrash #SOL
Cointelegraph reached out to Crypto.com, who confirmed that reports circulating on social media about suspensions of USDC and USDT deposits and withdrawals on the Solana network were true.
The exchange added that “any deposits that have not been delivered to these two tokens via the Solana network will be refunded for free within the next two weeks.” However, they refused to provide more details on the matter.
Over the past 96 hours, the cryptocurrency markets have been in a frenzy due to the crash of cryptocurrency exchange FTX.
On November 6, Binance CEO CZ announced plans to completely liquidate his holdings of the FTX Token (FTT), the parent token of rival FTX exchange, triggering a bank run and a plunge in the FTT price.
A surprising turn of events occurred on October 8, when the CEO of Binance revealed that it had “signed a non-binding letter of intent, with the aim of fully acquiring FTX.com and helping cover the liquidity crunch” the competitor was facing.
The CEO added that it was not set stone by stone because they were “evaluating the situation in real time” and had the option to “exit the deal at any time.” Less than 48 hours later, the CEO announced that he had completely pulled out of the deal.
The revelations of these recent events have had a ripple effect on the markets, particularly in ecosystems with close ties to FTX and its associated companies.
On November 9, Cointelegraph reported that Solana (SOL) was about to post its worst daily performance ever, with the price of SOL dropping more than 40% due to its association with Sam Bankman-Fried, the founder of SOL. Alameda Research Funding and FTX Cryptocurrency Exchange.
Amid the ongoing events, Solana Labs co-founder Anatoly Yakovenko shared a post on Twitter indicating that Solana was not affected by the events. “Solana Labs, which is an American company, doesn’t have any assets in ftx.com, so we still have a lot of bookings and, fortunately, we still have a small team,” he said.
Solana Labs, a US company, didn’t have any assets at https://t.co/nL7jEmgrVT, so we still have a lot of runway, and luckily we still have a small team.
– toly (aeyakovenko) November 9, 2022
At the time of writing this article, SOL was trading at approximately $14.09, recording a decline of 25.4% over the past 24 hours.