Fearing similar FTX collapse… Cryptocurrency falls to 22-month low by Investing.com

Fearing similar FTX collapse… Cryptocurrency falls to 22-month low by Investing.com
Fearing similar FTX collapse… Cryptocurrency falls to 22-month low by Investing.com

Fearing similar FTX collapse… Cryptocurrency falls to 22-month low by Investing.com


Investing.com – Crypto.com’s native token Crypto.com fell to a 22-month low on Monday amid heightened scrutiny from central exchanges following the collapse of major player FTX earlier in the month.

The CRON/USD pair is down 28% to $0.0557 and has halved over the past week as investors fear a potential liquidity crunch, similar to FTX.

fears increase

Concerns about the exchange’s financial health escalated over the weekend after on-chain data showed it accidentally sent about 82% of its Ethereum reserves, or about $400 million, to a Gate.io-connected wallet in October.

Despite the refund, traders said the transfer went against Crypto.com’s claims that all user funds remain offline in cold wallets.

The exchange, which also recently disclosed its cryptocurrency reserves, has come under fire for holding more than 20% of its reserves in crypto memes.

request to stay away

These discoveries came shortly after the collapse of FTX, which was accused of embezzling client funds and failing to process withdrawals. Sentiment towards centralized operators like Crypto.com was deeply shaken by this crash, as many industry participants urged traders to remove their funds from centralized exchanges.

Binance CEO Crypto.com also slammed Crypto.com, warning users and urging them to “stay away”.

While Crypto.com CEO Chris Marsalek reassured traders that their funds are safe, a growing number of social media influencers advised users to withdraw their funds from the platform.

CRO losses far outpaced falls in the broader market over the past 24 hours. Bitcoin, the world’s largest digital currency, fell 4% against the US and hovered around a two-year low, while Ethereum lost 6%.

Tokens from other central exchanges also fell. The Binance token has lost almost 5% while the original OKEx token has lost 6%.

Cryptocurrency markets went into free fall last week after FTX, the third largest exchange in the space, filed for bankruptcy and suspended customer withdrawals. Attention now turns to other stock-hit companies as lender BlockFi recently suspended payouts related to its dealings with the troubled exchange.


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