Tuesday, September 26, 2023

Binance, Crypto.com execs tell investors to ‘ask me anything’ after FTX fall

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Both Binance and Crypto.com hosted live Q&A sessions on Monday morning in an effort to reassure investors that the cryptocurrency exchanges will not suffer the same fate as FTX, which suddenly and catastrophically collapsed last week.

Binance CEO Changpeng “CZ” Zhao told listeners during a Twitter Space that the company currently has no obligations. “We have a very simple company,” explains CZ. “We have no loans, we have no debts, we don’t owe anyone money.” He also stressed that Binance’s funds never leave the platform and that the company is “self-contained”.

Meanwhile, Crypto.com, which saw an increase in withdrawals over the weekend after admitting to accidentally transferring $400 million to another crypto exchange, held an AMA on Youtube. “Our platform just performs,” said Kris Marszalek, CEO of Crypto.com. “People are pouring, people are withdrawing, people are trading. There is almost normal activity, only at an elevated level. Marszalek adds that the company “does not engage in irresponsible lending practices as a business” and has “never taken risks for third parties”.

Crypto.com posted a preliminary glimpse on its reserves last week, drawing criticism from investors after realizing the company holds more Shiba Inu — a meme coin worth a fraction of a penny — than Ethereum, a much bigger player in the crypto market with a price currently hovering around $1,200.

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