Crypto.com chief executive Kris Marszalek has joined a growing list of cryptocurrency firms publishing their “audited proof of reserves” in the aftermath of the FTX crypto scandal.
The message comes shortly after a second platform, Solana, temporarily halted transactions on its USDC and USDT coins on Wednesday, triggering concern from Crypto.com.
It reassured customers they could withdraw both coins from its systems, indicating some networks were unaffected by the downtime.
“[We] will publish the list of cold wallet addresses and balances for major assets within 24 hours. Full transparency,” he said in one of his tweets.
https://t.co/pFc4Pz9nFR will publish the list of cold wallet addresses and balances for major assets within 24 hours.
— Kris | Crypto.com (@kris) November 11, 2022
Full transparency.
He added in the thread: “We share the belief that it should be necessary for crypto platforms to publicly share proof of reserves”
Solana has an active and robust ecosystem of builders. The network is strong. @solanaconf demonstrated that the energy and commitment and range of projects is stronger than ever. That hasn’t changed in the last 48 hours.
— Solana (@solana) November 10, 2022
The vision remains the same. A thread 🧵 pic.twitter.com/Ly0XxcHUNk
Additional companies, including Binance, the world’s largest exchange platform, also pledged to remain transparent with their crypto reserves by establishing a Proof of Reserves audit system.
The company said in its statement that it would share details of hot and cold wallet addresses to create a “Merkle tree [proof of funds]” it would share with the community “in the next few weeks.”
It concluded: “Our objective is to allow users of our platform to be aware and make informed decisions that are aligned with their financial goals.”
FTX, SBF Downfall
News of the blackout comes just days after crypto markets spiralled into a freefall after major crypto exchange platform FTX collapsed, citing a massive liquidity crunch
The company attempted a deal with Binance to receive crucial liquidity boosts, but the deal fell through after the former’s chief executive, Changpeng Zhao (CZ), backed out of negotiations over the latter’s compliance issues.
Both companies had entered a “non-binding Letter of Intent” to buyout FTX.com to bail out the struggling platform from its liquidity crisis.
News of the fallout triggered an unprecedented bank run of FTX’s cryptocurrency, FTT, leading to further headaches for the company.
Company CEO Sam Bankman-Fried (SBF) saw his fortunes wiped out from roughly $26 billion to $1 billion after the major incident, with both FTX and his hedge fund Alameda Research plummeting to $1 in value.
Solana’s (SOL) price also nosedived roughly 30 percent to around $14.97, or a 30.29 percent drop in the last 24 hours, according to data from CoinMarketCap.
Solana has an active and robust ecosystem of builders. The network is strong. @solanaconf demonstrated that the energy and commitment and range of projects is stronger than ever. That hasn’t changed in the last 48 hours.
— Solana (@solana) November 10, 2022
The vision remains the same. A thread 🧵 pic.twitter.com/Ly0XxcHUNk
Despite this, company co-founder Anatoly Yakovenko tweeted that his company “didn’t have any assets on ftx.com” and still had “tons of runway” to operate despite the downturn.
He said in a tweet that Solana had an “active and robust ecosystem of builders” with a strong network, concluding: “that hasn’t changed in the last 48 hours.”
