Funds Are SHIB? Crypto.com Reserves Are 20% Memecoin

Dogecoin ripoff shiba inu is a major asset at one of the world’s largest crypto exchanges.

article-image

share

According to a wallet analysis published by Crypto dot com CEO Kris Marszalek on his official Twitter feed, 20% of all reserves at the exchange are held in the highly speculative memecoin shiba inu (SHIB).

As fear of crypto contagion from the FTX meltdown spreads, Marszalek seems eager to prove that any exposure to the crisis is limited, and shared links to a Nansen dashboard that illustrate over $2 billion in reserves.

 A Crypto dot com spokesperson said that “The reason our Proof of Reserves include Shiba is because we hold customers balances 1:1. Thus, our Proof of Reserves are dictated by our customer holdings.”

Bitcoin accounts for 30.67% of the total reserves, while ether is 17.32%. Only 11.99% of the reserves published are held in stablecoins USDC and USDT.

It’s the 19.77% of reserves held in SHIB that will raise eyebrows.

Image: Nansen

Each shiba inu token has a current value of $0.000000979 this morning, representing a market cap of $5.7 billion. CoinGecko data showed that Binance and Coinbase had trading volumes of around $32 million and $25 million respectively.

Read more: What Is Proof of Reserves and Can It Build Back Trust?

SHIB also briefly flippened Solana’s token SOL this week as market participants worried about the close ties of the Solana ecosystem to FTX and Alameda.

Australian exchange CoinJar decided to delist CRO, the native token of Crypto dot com, earlier this week, explaining that “In light of recent events, we have decided that [Crypto dot com] Coin (CRO) no longer meets our listing requirements. Unfortunately, we have to take this action on short notice due to ongoing market volatility.”

Update: November 11 2022 4:42pm ET: Added quote from Crypto dot com spokesperson, contextual update.

Macauley Peterson and David Canellis contributed reporting.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Tags

Upcoming Events

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research report HL cover.jpg

Research

It's increasingly apparent that orderbooks represent the most efficient model for perpetual trading, with the primary obstacle being that the most popular blockchains are ill-suited for hosting a fully onchain orderbook. Hyperliquid is a perpetual trading protocol built on its own L1 that aims to replicate the user experience of centralized exchanges while offering a fully onchain orderbook.

article-image

Consensys filed a lawsuit against the SEC in a Texas court on Thursday

article-image

Marathon Digital’s hash rate target of 50 EH/s by the end of 2025 may be achieved a year sooner than expected, CEO says

article-image

The Algorand Foundation touts the network as first to go after pool of 10 million global developers

article-image

Drive-to-earn DePIN project MapMetrics will slowly transition to the peaq blockchain

article-image

The suit, filed in a Texas court, alleges a regulatory overreach by the SEC

article-image

This is the first crypto-centric announcement from Stripe since May of last year