The exchange is struggling to cope with the numerous withdrawal requests after the FTX case and FUD tweets hype
Crypto.com, one of the world’s largest crypto exchanges and the world’s largest network of credit cards with crypto cashback (through the proprietary token Cronos, CRO) is, according to several industry experts, experiencing a "bank run" to which apparently it is failing to cope.
If this were confirmed the reason would be quite serious: it would mean that Crypto.com does not actually hold the cryptocurrencies deposited by customers.
Many industry experts speak of impending bankruptcy, even a matter of hours. Meanwhile, the CRO token is collapsing, a sign that users are trying to get rid of the token en masse and / or that the company is selling tokens on the market to acquire crypto or cash to meet withdrawal requests.
The tweets and social messages of the last few hours on the "Crypto.com bankrun"
Below is a series of tweets and social posts regarding the story. The comments are divided between the finding of a bankrun (run to the counters) in progress to the invitation not to hold their crypto on the exchange. Obviously all these messages have the effect of contributing to procuring the phenomenon they are describing
PEOPLE ARE CURRENTLY TRYING TO DO A BANKRUN ON CRYPTO .COM LETS SEE IF THEY SURVIVE WITHOUT PAUSING WITHDRAWALS.
— GURGAVIN (@gurgavin) November 13, 2022
Withdraw your crypto from #CryptoCom exchange to be safe.
— Mr. Whale 🐳 whalechart.org (@WhaleChart) November 13, 2022
GET YOUR MONEY OF CRYPTO(.)COM NOW!
— Crypto Rover (@rovercrc) November 13, 2022
There is no shortage of comments that recall how, faced with a bankrun phenomenon, even a traditional bank would be pushed into bankruptcy by its own customers:
People kinda trust them blindly #CryptoCom #FTXbankruptcy pic.twitter.com/OQ2CJHS6UC
— Rickyedgo.crypto (@Ricky_edgo) November 12, 2022
We can directly testify that of 2 withdrawal requests made during this afternoon, November 13, 2022, only one in ethereum was successful while the one in bitcoin was not.
Remembering that it is never a good idea to leave cryptocurrencies on the wallets of an exchange (in fact they must always be kept on a private and local wallet), we will continue to follow the evolution of the story.
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Users claim hours to withdraw on twitter
In today’s day, the tweet of Youtuber @MartiniGuyYT stood out, who as we could also witness in yesterday’s day experienced a long wait to withdraw his assets from Crypto.com
It was followed a few hours later by a tweet from Crypto.com CEO Kris Marszalek pointing out that the withdrawals are regular, calling for an end to FUD, an acronym that stands for Fear, uncertainty and doubt and represents in crypto jargon, the activity of spreading panic and uncertainty to impact the price of a digital asset.
Huge spike in withdrawals
The current spike in withdrawals from Crypto.com is huge. Below is a graph regarding Ethereum and related tokens, the graph represents transaction volume.
Meanwhile, Twitter verified user foobar shares data suggesting how Crypto.com may have used users’ deposits for speculative activities of its own, a serious fact in itself that could make them effectively insolvent in case bankrun continue.
cryptodotcom sent over $1 billion of stablecoins to FTX during the past year. simultaneously, the defillama team has been unable to account for the $1.6 billion of stablecoins bridged to Cronos Chain
another CEX playing hedge fund with customer deposits, only to lose it all? pic.twitter.com/4oJX4K68p9
— foobar (@0xfoobar) November 13, 2022
BTC withdrawal processed
About 6 hours after the request the Bitcoin withdrawal was successful, operations then slowed down but Crypto.com is in fact currently able to clear withdrawal requests.
BTC withdrawal still in progress
After 2 hours from the transfer request, the bitcoin withdrawal from the account we have access to is still not performed. On the Crypto.com app the same is "pending".
The timely execution of the withdrawal in ETH is confirmed.
Original article published on Money.it Italy 2022-11-13 19:16:00. Original title: Crypto.com sta per fallire?
