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Crypto.com CEO touts company's 'strong balance sheet' in face of FTX contagion fears

Crypto.com CEO Kris Marszalek is confident that his company won't go the way of FTX.

Ozzie Mejia

November 14, 2022 11:40 AM

Crypto.com

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Last week was a brutal one for the cryptocurrency phenomenon following the implosion of crypto company FTX. Some have seen this as a harbinger of things to come for crypto as a whole, but other firms fully believe that they can avoid FTX's fate. One of them is Crypto.com with CEO Kris Marszalek expressing confidence in his company's future.

"We will just continue with our business as usual, and we will prove all the naysayers – and there is many of these right now on Twitter in the last couple of days – we'll prove them all wrong with our actions," Marszalek said in an AMA video (via CNBC). "We'll continue operating as we have always operated to continue being a safe and secure place where everybody can access crypto."

There have been questions about cryptocurrency's viability over the past week following FTX filing for bankruptcy. Crypto.com, specifically, faced questions after sending $400 million worth of ether cryptocurrency to Gate.io in October by mistake. While both Crypto.com and Gate.io stated the transaction was done in error, it nonetheless raised questions about the security of user funds. Marszalek confirmed the mistake and has since affirmed that transfer processes and management have been strengthened with security in mind.

Cronos (CRO), Crypto.com's cryptocurrency, has been trending positively throughout Monday, up by more than 12 percent at the time of this post and sitting at a value of $0.06742. However, that's down by more than 50 percent from a week ago, when Cronos was valued at $0.1245. The currency would have to perform a lot better to catch up to where it was seven days ago.

With that said, Marszalek is adamant that Crypto.com can continue working as usual. While CNBC noted that $68 million in ether and $120 in other Ethereum-based tokens were withdrawn by users, the company added another $62 million in ether and $140 million of other digital assets to offset those withdrawals. The CEO is also promising an audited proof of reserves will be shared within the next 30 days. Whether Crypto.com can avoid FTX's downward spiral remains to be seen, but we'll keep watching this story here at Shacknews.

Ozzie Mejia

Senior Editor

Ozzie has been playing video games since picking up his first NES controller at age 5. He has been into games ever since, only briefly stepping away during his college years. But he was pulled back in after spending years in QA circles for both THQ and Activision, mostly spending time helping to push forward the Guitar Hero series at its peak. Ozzie has become a big fan of platformers, puzzle games, shooters, and RPGs, just to name a few genres, but he’s also a huge sucker for anything with a good, compelling narrative behind it. Because what are video games if you can't enjoy a good story with a fresh Cherry Coke?