A very cold winter and the fall of the FTX empire affected the entire industry. With confidence in CEX waning, CEOs of various platforms have scrambled to try to assuage their clients’ concerns.
Crypto.com has been in the social media spotlight for this very reason. After an AMA from its CEO, the exchange sent out an email to its clients, assuring everyone that their funds were safe and available to withdraw or trade 24/7.
Funds are safe at Crypto.com
According to an email obtained by CryptoPotato titled “Industry Leadership in Safety, Compliance and Security,” Crypto.com is reassuring its 70 million customers that despite a “difficult week,” the platform is secure and has regulatory approval from several countries around the world as evidence of its commitment to openness.
In the email, Crypto.com shares five key points that should be reassuring to its clients during the ongoing storm in the industry.
First and foremost, they ensure that client funds are kept 1:1 in safe reserves. They also promise that they can guarantee that they will save their users money when they want it.
The team at Crypto.com further states that as a sign of transparency, they have shared the addresses of their cold wallets so that users and interested parties can do a proper analysis.
On this point, they claim to be working on issuing a proof of their reserves, which they expect to happen as soon as possible.
Crypto.com has also been approved by regulatory authorities in 14 countries around the world, including the United States, Canada, the United Kingdom, Japan, and Brazil.
Finally, they state that they are committed to financial education for their clients and periodically publish guides with information on how to increase the security of funds.
CRO is recovering after a major recession
The collapse of FTX hit Crypto.com hard, particularly shortly after it was revealed that the exchange had sent 320,000 ETH in funds to rival Exchange Gate.io before the latter released its proof of reserves. Crypto.com CEO Chris Marsalek claimed that this was a mistake and said funds were returned, despite the fact that they received a smaller amount (285,000 in ETH) raised suspicions.
This led to a sharp drop in the price of CRO, the exchange’s native cryptocurrency that hit a yearly low in the early hours of Monday morning, reaching $0.0564 on Coinbase, according to Tradingview data.
The CEO AMA and mass email seem to have played in the company’s favor as the token has recovered about 30% of its decline and is trading around $0.0746 at the time of writing. However, this is still more than 86% lower than the price it was at the beginning of the year: about $0.5574.
The CryptoCom publication sends messages to customers assuring them that their funds are safe. CRO has recovered 30% since the yearly low first appeared on CryptoPotato.