Global cryptocurrency markets trade amid heightened uncertainty due to the collapse of cryptocurrency exchange FTX. However, growing problems at another cryptocurrency exchange, Crypto.com, have market participants concerned.
Investors pulled back sharply over the weekend after Crypto.com CEO Kris Marszalek reportedly admitted to mishandling a $400 million transaction. He mentioned that transfers were being sent to the wrong type of account on different exchanges.
Twitter users reported that on October 21, 2022, a large transaction worth $400 million in Ethereum was transferred. They highlight some other transfers between other smaller platforms and exchanges as evidence. In the meantime, Marszalek assured that this was done by accident and the tokens were restored.
However, the Crypto.com CEO’s comments failed to win back investors’ confidence. The price of its native token, Cronos, has plummeted by 50% over the past seven days. This poses a major threat to the digital asset market following the FTX crash.
Crypto.com announced that their CEO will be going live on Youtube to answer any questions and speculation regarding reported transactions on the platform. He wrote that a lot happened in the last week and he wanted to fix it.
A spokesperson for Crypto.com highlighted the higher level of activity on the platform. However, he claims that these assets are exactly matched to customer deposits. Fluctuations in deposit and withdrawal activity will not affect the quality of our service, he added.
Cronos price is down more than 10% in the past 24 hours. At press time, it was trading at an average price of $0.063848. 24-hour trading volume for CROs grew 175% to $255 million.