The latest collapse of cryptocurrency exchange FTX had Bitcoin and other digital coin suffering pressure on Monday. Moreover, market players remain worried amidst massive withdrawals at Crypto.com – a Singapore-based crypto exchange.
Crypto.com’s tweet revealed that its CEO Kris Marszalek will be live on YouTube to respond to questions surrounding some transactions within the ecosystem, which has triggered fund withdrawals and speculation.
The exchange stated that multiple questions arose following last week’s events. The questions about transfers of massive amounts of Ether coins from Crypto.com to another site last month came from a user that scrutinized transactions after the firm unveiled its cold wallet addresses.
Marszalek tweeted about recovering the accidentally transferred ether worth approximately $400 million, but his remarks could not erase market concerns following last week’s FTX collapse.
The Wall Street Journal revealed increased Crypto.com withdrawals during the weekend following Marszalek’s tweet. Twitter users highlighted other transactions between other smaller exchanges and platforms as evidence that leaned on one another to bolster reserves.
Bitcoin suffered more declines beneath $16K, pushing its monthly losses to 22.5%, whereas FTX’s FTT hovered at $1.60, reflecting a 94% plunge in November. The previous week saw Crypto.com’s native coin Cronos halving to $0.06.
BitStamp exchanges official Leonard Hoh commented on the current market conditions, stating that trust remains at a high premium due to transparency o the absence of it within this industry. He added that it remains challenging to access trustworthy exchanges at the moment.
Hoh trusts crypto firms are facing tests on their capabilities to satisfy their obligations & compliance controls. The marketplace needs actual proof rather than presuming that parties gave acted in good faith.
Crypto.com is one of the top ten exchanges globally as far as turnover is concerned, though smaller than the leader Binance and FTX.
Meantime, the impacts of the debacle of Bahamas-based FTX. This exchange filed for insolvency on Friday as customers indulged in massive withdrawals, and Binance’s failed rescue deal continued to crash the markets.
Bahamas Police Force confirmed that securities regulators & financial watchdogs are inspecting possible misconduct over FTX’s collapse.
Stay tuned for upcoming crypto updates.