CryptoCom Sends Letter to Clients Assuring Their Funds Are Safe. CRO Recovers 30% Since Yearly Low

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The freez­ing cryp­to win­ter and the fall of the FTX empire have hit the entire indus­try. As con­fi­dence in CEXs dwin­dles, the CEOs of the var­i­ous plat­forms have been quick to try and calm their cus­tomers’ fears.

Crypto.com has been in the social media spot­light because of this exact rea­son. Fol­low­ing an AMA from its CEO, the exchange sent an email to its clients assur­ing every­one that their funds are safe and avail­able for with­draw­al or trad­ing on a 24/7 basis.

Funds Are Safe in Crypto.com

Accord­ing to an email obtained by Cryp­toPota­to with the title “Lead­ing the indus­try in safe­ty, com­pli­ance, and secu­ri­ty,” Crypto.com assures its 70 mil­lion cus­tomers that despite the “dif­fi­cult week,” the plat­form is safe and has reg­u­la­to­ry approval from sev­er­al coun­tries around the world as a sign of its com­mit­ment to transparency.

In the email, Crypto.com recounts five key points that should be reas­sur­ing to its clients dur­ing the cur­rent storm in the industry.

First of all, they guar­an­tee that client funds are held 1:1 in secure reserves. They also promise to be able to guar­an­tee that users will have their funds avail­able when­ev­er they want them.

The team at Crypto.com fur­ther explains that as a sign of trans­paren­cy, they have shared the address­es of their cold wal­lets so that users and inter­est­ed par­ties can per­form a prop­er analysis.

CryptoCom email

Relat­ed to this point, they claim to be work­ing on issu­ing their proof of reserves which they expect to hap­pen as soon as possible.

Also, Crypto.com has the approval of reg­u­la­tors in 14 coun­tries around the world, includ­ing the Unit­ed States, Cana­da, the UK, Japan, and Brazil.

Final­ly, they state that they are com­mit­ted to their clients’ finan­cial edu­ca­tion and pub­lish peri­od­ic guides with infor­ma­tion on how to increase the secu­ri­ty of the funds.

CRO Recovers After a Major Slump

The FTX crash has hit Crypto.com hard, espe­cial­ly since short­ly after­ward, it was revealed that the exchange sent 320.000 ETH in funds to rival exchange Gate.io just before the lat­ter issued its proof of reserves. Crypto.com CEO Kris Marsza­lek claimed that this was a mis­take and that said funds were returned, although the fact that they received a small­er sum (285.000 in ETH) raised sus­pi­cions.

This gen­er­at­ed a sharp drop in the price of CRO, the exchange’s native cryp­tocur­ren­cy that touched year­ly lows dur­ing the ear­ly hours of Mon­day morn­ing, touch­ing $0.0564 on Coin­base, accord­ing to Trad­ingview data.

Price of CryptoCom (CRO). Image: Tradingview
Price of Cronos (CRO). Image: Tradingview

The CEO’s AMA and the mass email seem to have played in the company’s favor as the token has recov­ered about 30% from its low, trad­ing around $0.0746 at the time of writ­ing. How­ev­er, this is still more than 86% below the price it had at the begin­ning of the year: Around $0.5574.

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