The cryptocurrency community is scrutinizing the exchange and wallet provider Crypto.com.
On November 13, analytics company “Lookonchain” conducted some research into Crypto.com’s funds. Although what it found has raised some eyebrows, it is not very shocking.
Crypto.com $2.68 billion in digital assets are stored in six Ethereum wallets and six Bitcoin wallets, it was discovered.
The exchange has more Shiba Inu (SHIB) than Ethereum (ETH). The information indicates that it owns $531 million in SHIB and $446 million in ETH. It also has its own CRO coin, worth $80 million.
We did an analysis of wallets of https://t.co/INIxikglp6.
1.🧵
Here are some of our findings:👇#CryptoCom— Lookonchain (@lookonchain) November 13, 2022
Unauthorized Transfers
40% of Crypto.com’s assets, according to the data provider, have low liquidity.
“If you have funds on Crypto.com, please pay attention to the safety of your funds. They hold a lot of $SHIB and $CRO.”
Prior to the company releasing its evidence of reserves, it also disclosed a fictitious transfer of assets. It was found that before the reserve announcement, Crypto.com withdrew a total of 210 million USDT from Binance and 50 million USDC from Circle.
With this weekend’s message, Binance CEO Changpeng ‘CZ’ Zhao also reiterated the cautions:
If an exchange have to move large amounts of crypto before or after they demonstrate their wallet addresses, it is a clear sign of problems. Stay away. Stay #SAFU. 🙏
— CZ 🔶 Binance (@cz_binance) November 13, 2022
Crypto.com’s CRO crashes
Over the weekend, CRO, the exchange’s native token, experienced a significant drop. CRO recently dropped 28% to a low of $0.056 from an intraday high of $0.078.
CRO had fallen by 50% in just seven days and was trading at about $0.060 at the time of publication. In addition, the troubled token has lost 94% of its value since hitting an all-time high of $0.965 at this time last year.
Disclaimer: The information provided is not trading advice, Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.