This is one of the most unnecessary ways to shoot your self in the foot during this time people are very vigilant. FTX came as a big shocker and big awareness to a lot of us, we are now trying to be careful. People are requesting for transparency so bad because people have lost a lot in the hands of centralized exchanges. Most of these exchanges that went bankrupt and filed for bankruptcy, all lied that customer’s assets were safe. If you look at the history, from voyager, losing billions of people’s funds to Celsius and 3AC after reassuring the public that customer’s assets are safe to FTX that did the same few days ago. Then exited with a big bang claiming that the exchange got hacked. FTX that was supposed to be one of the most secured Exchanges suddenly got hacked and lost about $1 Billion.
source
Lots of exchanges are going through scrutiny both from regulators and the public. The blockchain is very transparent, this way people can track activities on the blockchain, as you can see Binance is trying their best to sustain the public’s trust by declaring its reserve and reassuring the public that they are safe. Because if FTX can crash, any company can crash. This also led to people discovering and unusual transfer between crypto.com and Gate.io.
So crypto.com is claiming that while trying to send 80% of their ETH holding to a cold storage, they mistakenly sent it to gate.io address. Really? How could they have? What if the address was a wrong address and it was a mistake, that is how they would have lost 80% of user’s funds. This looks so suspicious because this was done just before gate.io decided to be transparent and showed it’s user it’s proof of reserve, then a miraculous $400 Million worth of ETH was mistakenly transferred to them. This sparked FUD for crypto.com as people didn’t trust their story and started dumping their native token CRO.
The native token lost 50% of its value, I would have dumped my token after the tweet too, but I locked my CRO token for 3 months which is a mistake I will never make again, because, I can’t access my token to dump it. Everyone is scared, everyone is trying to be careful, one thing I can say for sure is that, this year is eliminating the untrustworthy exchanges and exposing them all because of the bear market. At least people are beginning to learn and know that decentralization is the only true way to win in this crypto game we are all playing.
Posted Using LeoFinance Beta
Kris did a live stream
Posted Using LeoFinance Beta