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Kris Marszalek, CEO of cryptocurrency exchange Crypto.com has become the latest crypto company promising to publish “audited proof of reserves,” amid the downfall of rival exchange FTX.\u00a0<\/p>\n
“We share the belief that it should be necessary for crypto platforms to publicly share proof of reserves,” said\u00a0Marszalek, adding that his company “will be publishing our audited proof of reserves.”<\/p>\n
\nWe share the belief that it should be necessary for crypto platforms to publicly share proof of reserves and https:\/\/t.co\/pFc4Pz9nFR<\/a> will be publishing our audited proof of reserves.<\/p>\n
\u2014 Kris | Crypto.com (@kris) November 10, 2022<\/a><\/p><\/blockquote>\n
The idea for crypto companies to publish their proof of reserves has gained traction in the wake of the FTX liquidity fiasco.\u00a0Binance CEO Changpeng \u201cCZ\u201d Zhao on Nov. 8 also pledged to start a\u00a0Proof-of-Reserves audit system to give the public insights into the state of their reserves.\u00a0<\/p>\n
The Crypto.com CEO’s comments come only hours after the exchange temporarily suspended withdrawals and deposits of USDC and USDT on the Solana network on Nov. 9.<\/p>\n
In an email to users on Nov. 9, which had been circulating on Twitter, Crypto.com reportedly notified users of an \u201cImmediate suspension of UDSC and USDT Deposits and withdrawals on Solana.\u201d <\/p>\n
In the email, the exchange assured its customers that they could still withdraw USDC and USDT at any time using other supported networks, such as Cronos and Ethereum, suggesting that other named networks had not been impacted by \u201crecent industry events<\/a>\u201d.<\/p>\n
\nWhen https:\/\/t.co\/5NeQKxhWmO<\/a> suspends all deposits and withdrawals via #Solana<\/a> is clear something is not right… #cryptocrash<\/a> #SOL<\/a> pic.twitter.com\/GFAcOVTzNR<\/a><\/p>\n
\u2014 The Black Tie Report (@BlackTieReport) November 9, 2022<\/a><\/p><\/blockquote>\n
Cointelegraph reached out to Crypto.com, who confirmed that the news circulating on social media about the suspension of withdrawals and deposits of USDC and USDT on the Solana network was indeed true. The exchange added that \u201cany unreceived deposits of these two tokens over Solana will be refunded without a fee for the next two weeks.\u201d However, they declined to provide more depth on the issue. <\/p>\n
The exchange added that \u201cany unreceived deposits of these two tokens over Solana will be refunded without a fee for the next two weeks.\u201d However, they declined to provide more depth on the issue. <\/p>\n
The past 96 hours have seen the crypto markets sent into a frenzy due to the collapse of the crypto exchange FTX. <\/p>\n
On Nov. 6, the CEO of cryptocurrency exchange Binance, Changpeng \u201cCZ\u201d Zhao, announced plans to liquidate the entirety of its position in FTX <\/a>Token (FTT<\/a>), the native token of competing exchange FTX, which led to a bank run and the plunging of the price of its FTT token<\/a>. <\/p>\n
A surprise turn of events occurred on Oct. 8 when the Binance CEO shared that his company had \u201csigned a non-binding Letter of Intent, intending to fully acquire FTX.com and help cover the liquidity crunch<\/a>.\u201d <\/p>\n
The CEO added that nothing was set in stone as they were “assessing the situation in real time” and had the ability “to pull out from the deal at any time.”<\/p>\n
Less than 48 hours later, the CEO announced they had pulled out of the deal entirely.\u00a0<\/p>\n
Related: Solana erases its \u2018Google rally\u2019 gains, but a 50% Sol price recovery is still in play <\/em><\/strong><\/a><\/p>\n
The unfolding of these latest events has caused a cascading effect on the markets, particularly those with links to FTX and its related companies.\u00a0<\/p>\n
On Nov. 9, Cointelegraph reported that Solana (SOL) was on the track to log its worst daily performance on record<\/a>, as SOL\u2019s price dropped more than 40% due to its association with Sam Bankman-Fried, the founder of crypto-focused hedge fund Alameda Research and cryptocurrency exchange FTX<\/a>.<\/p>\n
In the midst of the unfolding events, the co-founder of Solana Labs, Anatoly Yakovenko shared a tweet suggesting that Solana had not been affected by the unfolding events. He stated; \u201cSolana Labs, a US corp, didn\u2019t have any assets on ftx.com, so we still have tons of runway, and luckily still a small team.\u201d<\/p>\n
\nSolana Labs, a US corp, didn\u2019t have any assets on https:\/\/t.co\/nL7jEmgrVT<\/a>, so we still have tons of runway, and luckily still a small team.<\/p>\n
\u2014 toly (@aeyakovenko) November 9, 2022<\/a><\/p><\/blockquote>\n
At the time of publication, Solana was trading at around $14.97, down 30.29% over the last 24 hours.\u00a0<\/p>\n
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