CryptoCom Commits to Proof-of-reserves after Crisis on FTX Market Liquidity
Statements of big companies over proof-of-reserve
“We share the belief that it should be necessary for crypto platforms to publicly share proof of reserves,” stated CEO, the Crypto.com. Kris Marszalek, CEO of crypto asset exchange Crypto.com has become the first crypto company promising to publish “audited proof of reserves,” after the downfall of rival exchange FTX.
“We share the belief that it should be necessary for crypto platforms to publicly share proof of reserves,” said Marszalek, further adding that his company “will be publishing our audited proof of reserves.”
Binance view on the crisis –
The idea for crypto companies to publish their proof of reserves has gained its votes after the liquidity crisis with FTX. Binance CEO Changpeng “CZ” Zhao also pledged to start a Proof-of-Reserves audit system to give the public insights into the state of their reserves.
The Crypto.com CEO commented hours after the exchange temporarily suspended withdrawals and deposits of USDC and USDT on the Solana network. This was informed to the users over mail which was further circulating on Twitter, Crypto.com notified its users of an “Immediate suspension of UDSC and USDT Deposits and withdrawals on Solana.”
In the said email, the exchange assured its customers that they can still withdraw USDC and USDT at any time using any other supported networks, apart from Solana as Cronos and Ethereum, suggesting that other networks had not been impacted by “recent industry events”. The CEO of crypto asset exchange Binance, Changpeng “CZ” Zhao, announced further plans to liquidate the entirety of its position in FTX Token
Acquisition of FTX by Binance –
The Binance CEO later shared that his company had “signed a non-binding Letter of Intent, intending to fully acquire FTX.com and help cover the liquidity crunch.” The CEO also added that nothing was set in stone or fixed as they were “assessing the situation in real time” and had the ability “to pull out from the deal at any time.”
Then even less than 48 hours later, the CEO announced they had pulled out of the deal entirely. The unfolding of these latest events has caused lasting and disastrous effects on the markets, particularly those with links to FTX and its related companies.
