Investors fear cryptocurrency’s equivalent of a run on the banks as the head of another popular exchange tried to reassure investors following the dramatic collapse of FTX.
Crypto.com chief executive Kris Marszalek held a livestreamed Q&A on YouTube to answer questions around some transactions on the platform that had sparked speculation and fund withdrawals.
Mr Marszalek said the company has a “very strong balance sheet” and insisted withdrawals from the platform are working and will continue to work
Crypto.com, which lends its name to the Crypto.com Arena, the home of the NBA’s Los Angeles Lakers, had tweeted that “a lot has happened in the last week and there are a lot of questions which we want to address”.
It follows the sudden collapse of cryptocurrency exchange FTX, which it is feared will spark a crisis of confidence in the industry among investors.
The founder of the world’s largest crypto exchange Binance has said no one is safe from a “bad player” in the market.
Changpeng Zhao is a major rival of FTX founder Sam Bankman-Fried, although he did not mention him by name.
Mr Zhao, known as “CZ”, said the cryptocurrency world needs to “increase the clarity of regulations”.
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