if you don't think every single crypto exchange
is at risk of pausing withdrawals temporarily or permanently making it so you cannot access
your crypto you are dead wrong breaking news a potential Bank Run on crypto.com may be in
progress nearly 90 000 unique transactions have been processed in the last few hours suggesting
that users are scrambling to get their funds off the exchange over the weekend some doubts were
raised about the legitimacy of the reserves of crypto.com after it was revealed that the
singapore-based crypto exchange accidentally sent three hundred and twenty thousand each or
about 400 million dollars worth of eth to rival exchange gate dot IO this has led many critics to
accuse crypto.com and gate IO of sharing funds to post stronger looking proof of Reserve statements
strangely the CEO tried to claim that the transfer was actually a mistake explaining that the funds
had accidentally been sent to their Rivals account instead of crypto.com's own Cold Storage quote it
was supposed to be a move to a new Cold Storage address but was sent to a whitelisted external
exchange address Chris the CEO explained I've been seeing prominent crypto personalities with a
reputation to lose as well as regular people who use the exchange claiming that they're not able to
withdraw from crypto.com martiniguy mycrypto.com withdrawal of two Bitcoin has been pending for
24 hours this is not normal and it's suggesting they are bankrupt update funds still not arrived
funds still pending my concern is growing people reporting smaller transactions are fine but seeing
a lot of issues with larger transactions I've been seeing a lot of comments like this the crypto.com
team has been seeing comments and complaints like this withdrawals are being processed as usual
no fun please Chris the CEO took to Twitter to say we have a lot of unanswered questions here
maybe the biggest one is crypto.com CEO claiming that they accidentally sent 400 million of their
eth to the wrong wallet he's either lying about it or incompetent according to coffeezilla this
is Chris the CEO of crypto.com he answers these questions directly first things first is a true
the crypto.com stopped withdrawals is it true that you've stopped withdrawals this is absolutely
not sure um we are operating as usual again there is a heightened level of activity which means you
know higher trading volumes more revenue for us also a higher number of deposits and withdrawals
and we are operating as usual with higher levels of activity what you will see is that uh in a
customer service tickets uh there's some backlog there so we're working super hard on making sure
that that you get answers from customer service in a timely manner but withdrawals are absolutely
core and withdrawals are working and will always be working this is absolutely fundamental
uh so every time you see somebody on Twitter saying that oh in our Jaws are not working please
double check because they are working you go to status.crypto.com and you can see status in real
time of all the services so I recommend you guys take a look at it this week for uh there are only
three coins that where we stop withdrawals one is Gala which is a security institution a week ago
and two coins called SRM and array that are tied to FTX very closely so we want to protect our
users and progressively remove these this type of assets from our platform altogether number two
explain how your exchange accidentally sent 400 million dollars of eat to the wrong wallet address
is it incompetency please explain your process to validate sending funds to the correct addresses
where was the breakdown in the 400 million moved incorrectly all right that's a great question
so first thing I want to clarify is that every single address that we are that our systems
uh allow funds to be sent to is whitelisted and approved and pre-approved and there is no
way that systems can go to an address that we can't control and and get the funds back from
people were speculating that oh you know we had to go and ask ktario to return the funds to us
no we we could just withdraw the funds and send it back because it was our corporate account
with them it's just the amount was so large that it was above their daily withdrawal limits
so we've we've asked them to increase our daily withdrawments and that was the extent of their
help so people need to understand at no time the funds were at risk of being sent somewhere where
we couldn't get it back make sure you subscribe to our Channel we post a video updating you on the
entire cryptocurrency Market on a daily basis subscribers of this channel are way more informed
than the average crypto.com user next question and just spell this out for us Chris is crypto.com in
financial trouble several influencers on Twitter have been saying crypto.com is in financial
trouble what do you have to say to them what's a this is not the first time that people
are saying things about crypto.com I've been saying it for for a few years right and what I can
say is that we will do what we've always done we will prove people wrong with our actions and not
our words so in a couple of months all these guys are going to look really really bad for throwing
allegations that have absolutely no substance as a company we not only have one-to-one Reserve
coverage we also have a tremendously strong balance sheet so we will continue operating
as usual and we will prove people wrong I'm looking forward to it more than anything else
so crypto.com is promising to do a full proof of reserves in the coming weeks they say that
takes some time in the meantime they've released some cold wallet addresses for us and some of the
things that we were able to find have been quite revealing crypto.com CEO and founder Chris just
released a cold storage address or two their proof of reserves in full is coming later the scary part
so far they hold more shib than eth based on what they've released so far 20 of their Holdings is
ship explain yourself why do you hold so much ship on Friday we released our cold wallet addresses
and a lot of people are talking about 20 percent of the reserve is in ship can you explain that a
lot of people were wondering how does that happen it's one to one right so we we store whatever our
customer was buying and it so happens that last year Dodge and and she were two extremely hot meme
coins and people bought a lot and they're holding it they didn't sell it so as long as our users
are holding we will be we'll be holding it we have we have no control over what you guys buy
you know you buy it we will start it will keep it safe for you and that's it I want to make it
clear for everybody that those are not our funds those are client funds so despite the fact that
Chris the CEO is telling people especially people with big audiences to quiet down no fun please
everything is fine funds are safu that hasn't stopped some of the biggest people on crypto
Twitter or crypto social media with some of the biggest reputations to lose from drawing attention
to the fact that they believe that crypto.com is bad news coffeezilla crypto.com CEOs old company
and Sogo was known for shutting down abruptly suddenly and without no prior warning word to
the wise take your money out while you can when crypto.com goes bust people will ask how nobody
saw it coming given their CEO's history with scammy businesses Google and Sago but the thing
is we did see it coming we warned you don't end up like in Sago customers and of course there's
many comparisons to FTX FTX wasn't exchange crypto.com is in exchange how is crypto.com
different from FTX essentially there are two business models in cryptocurrency space right
one is The Brokerage model where our platform for example is a counterparty to the transaction
and every time our users buy or sell crypto we immediately passed their position to have zero
Market risks and we take a fee for providing the access to it this is 95 of our business that's
also 95 of business of coinbase and the other model is taking a fee on the exchange where
people trade hundreds of millions of dollars you know high volume Traders these are a couple
bips and whatnot so those are the two business models and we focus on the retail part of the
business our exchange while growing fast and we've just launched our gen F3 version of The Exchange
we've got a lot of great features and even lower fees it's it's growing nicely but it's still
a small portion of our business retail access to 70 million people this is our core so it's
completely different comparing to FTX how does crypto.com make money anyway what is the business
model what are crypto.com's main sources of income and profit it's is the fees our users pay whenever
we give them access through Fiat or crypto trading we've got also some smaller revenue streams for
example or crypto company solution where merchants accept cryptocurrency as a form of payment for
their goods and and we charge you know 50 basis points or providing the service and subsequently
converting it to Fiat for them but majority of it is just a global access to retail so is it a
good idea to withdraw your funds from crypto.com first of all crypto.com has the product where
they hold your crypto for you that's how you would presumably lose your crypto if there was
a problem crypto.com also has a product their defy wallet which totally allows you to control
your own keys so keep that in mind now here's the thing I withdrew 100 of my crypto from
crypto.com I helped my family withdraw 100 of their crypto from crypto.com I don't necessarily
think anything is wrong with crypto.com but if you haven't learned the importance of self-custody
by now then there may be no hope for you not your keys not your crypto sure the CEO says
everything's okay but isn't that what most CEOs Alex machinsky SBF isn't what most of them
say before they go insolvent or you just find out later they're lying to you again I'm not saying
this is the case here but if you haven't learned the importance of self-custody by now then there
may be no hope for you subscribe to the channel Channel we post videos like this on a daily basis
keeping you informed let me know what you think about all this in the comments below like the
video if you got value I'll see you tomorrow
