Withdrawals From This Rival Cryptocurrency Exchange Increased After Binance CEO’s Announcement!

CEO of Crypto.com cryptocurrency Customers rushed to withdraw their funds from the platform over the weekend after the exchange said it mismanaged a transaction of about $400 million.

Crypto.com CEO Kris Marszalek said on Twitter that the transfer was sent to the wrong account type on another exchange.

Aforementioned Ethereum The transfer of most of the tokens took place on October 21, but came into question after Twitter users flagged the transfer as unusual based on public blockchain transaction records.

Concerns about Singapore-based Crypto.com spread online over the weekend, with prominent figures in the digital currency world targeting the company. Cryptocurrency investors are on their toes after the rapid collapse of one of the most trusted exchanges, FTX, which went bankrupt within a week.

Withdrawals from Cryptocurrency Exchange Crypto.com Increased

Changpeng Zhao, CEO of Crypto.com’s larger competitor Binance, appeared to question the nature of the transfers without the company’s name, which may have fueled Sunday’s withdrawals, according to crypto industry representatives.

“If an exchange has to move large amounts of crypto before or after showing wallet addresses, it is a clear sign of problems,” Zhao tweeted on Sunday.

The value of Crypto.com’s own cryptocurrency has dropped nearly 20% from the last 24 hours on Sunday.

Marszalek dismissed the concerns about Crypto.com, tweeting later on Sunday that the October transfers had “provoked a lot of FUD and speculation on Twitter” weeks later.

A Crypto.com spokesperson said that the platform is seeing higher levels of activity and has assets that fully match customer deposits. “Fluctuations in deposit and withdrawal activity do not affect our service levels,” he added.

Argus Inc., a blockchain analytics firm. An outside analysis of Crypto.com’s public blockchain showed that users have withdrawn a net worth of $14 million worth of cryptocurrency ETH and $39 million worth of other tokens tied to the Ethereum network from Crypto.com.

According to Argus, Crypto.com moved $33 million from other wallets during the same time period to meet customer demands.

Argus co-founder Owen Rapaport said that Crypto.com appears to have sufficient funds to cover user withdrawals.

“Overall things are not looking good for these guys,” said Adam Cochran, founder of venture capital firm Cinneamhain Ventures, which invests in blockchain-related companies. he tweeted.

*Not investment advice.

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