through Drama FTX Several cryptocurrency exchanges have promised to disclose their reserves. This is to restore users’ trust and to show how the exchange actually stands in a transparent manner. However, one of these exchanges seemed to have a massive amount of Shiba Inu as a reserve. What is going on here?
Crypto.com and SHIB
This is the American exchange Crypto.com. Yesterday, the exchange announced what exactly its reserves consist of. Crypto.com CEO, Chris Marsalek owns dashboard Share where exactly this can be seen. Unsurprisingly, most of the reserves of Crypto.com consist of Bitcoin (BTC).
While preparing the Proof of Reserves audit, we share our cold wallet addresses for some important assets on our platform.
This represents only a portion of our reserves: approximately 53,024 BTC, 391,564 ETH, as well as other assets totaling approximately 3.0 billion USD.
– Chris | crypto.com (kris) November 11, 2022
Bitcoin is worth about $900 million, and that makes up more than 30% of the wallet. The third largest allocation in raised (ETH), with a value of nearly $500 million. Ethereum accounts for more than 17% of reserves. Moreover stablecoins USDC and USDT each make up just over 5% of the allocation.
However, in second place is an unexpected cryptocurrency: Shiba Inu (INU). Nearly 20% of Crypto.com’s reserve is made up of meme currency and therefore Crypto.com stores more SHIB than ETH. Is this justified? After all, meme currency isn’t exactly known for its inherent stability or value.
– the master. Whale (WhaleChart) November 11, 2022
However, according to the CEO of Crypto.com, this has a rationale. All reserves at Crypto.com are entirely dependent on users’ funds. Marszalek states that the exchange keeps these 1 to 1 assets in its reserves. So it simply means that users on Crypto.com own a lot of Shiba Inu.
Other exchanges have also announced that they will publish the contents of their reserves. Also the Dutch Bitvavo plan to do itIt is not known when Bitvavo will share more details on this topic.
“Total coffee specialist. Hardcore reader. Incurable music scholar. Web guru. Freelance troublemaker. Problem solver. Travel trailblazer.”