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Last weekend was nothing short of a nightmare for the crypto space as market participants and influencers took on Crypto.com. Similar to that FTX, Crypto.com also had huge CRO and SHIB in their reserves which created huge panic in the market. The rounds of the platform facing liquidity issues quickly circulated in the space, which affected the price of CRO very hard.
It all started when the platform accidentally transferred nearly 400 ETH from Crypto.com to the Gate.io wallet a fortnight ago. While the CDC said these tokens should be sent to their cold wallet, they were transferred to a whitelisted corporate address. Meanwhile, many thought it was another cover-up for reserve evidence with Changphang Zhao.
On the other hand, outbound transactions peaked high on CDC with over 20,000 while inbound transactions maintained a single-digit value.
Meanwhile, the CDC has still not come under scrutiny as $1 billion was allegedly sent to FTX, but turns out to be an actual exposure of only $10 million. However, the founder clarified the claims and said that the platform has very little exposure to FTX and is used on trading platforms to hedge client trades. According to CDC founder Kris Marszalek, Coinbase also has $15 million locked up at FTX for the same reason.
As a result, the platform saw massive outflows of over 90,000 Ethereum transactions from its normal range of 6,000 to 6,500 transactions per day. However, crypto influencers believe that the price of CRO may also follow the fate of FTT and seem unconvinced by the reserves of over $2 billion, with almost 34% in BTC and 21.56% in SHIB in their portfolio.
Security has been in the spotlight lately, as the recent episode illustrates the normal routine of crypto exchanges. Moreover, it highlights when market participants are completely sure of the project and when they fall into FUD and quickly retreat.
