Since the collapse of the crypto exchange FTX, there is a lot of pressure from the crypto community on other exchanges. Since the end of last week, each of them has multiplied initiatives to show its reliability. One of the arguments most put forward is the proof of reservations. It responds to the problems of transparency of assets held on exchanges. This is a verification technique to ensure that the business is backed by real assets. Crypto.com, which has released healthy proof of reserves, is seeking further reassurance to its users and the rest of the industry.
A clear difference between the two crypto exchanges
The pressure on the exchanges so that they show white paws is more and more strong. For this, the CEO of Crypto.com, Kris Marszalek, multiplies communications to reassure users. Faced with rumors that Crypto.com has a similar setup to that of FTX, the executive gave some clarifications. According to him, the two exchanges work in two totally different ways. His explanations are available on the company’s YouTube channel.
“It is important to note that there are basically two business models in the crypto space. One is the brokerage model, where our platform, for example, is a counterparty to the transaction. Whenever our users buy or sell crypto, we immediately hedge the other position to have zero market risk. We take a commission to provide access. It’s 95% of our business. It’s also 95% of Coinbase’s business”he said.
He clarifies that FTX’s business model is to take fees on trades. Through this model, the exchange earns money from multiple sources. In most cases, it charges its users a commission or fee based on their transactions.
Kris Marszalek is determined to do everything possible to save his business from the current crisis. Crypto.com recently reached the milestone of 70 million users worldwide and aims to become a trusted player in the industry over the next few years.
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