Crypto.com CEO Explains How Exchange Is Different From FTX Amid Push for Reserves Transparency
Crypto.com CEO Kris Marszalek says his change operates in a different way than FTX, the digital asset buying and selling platform that famously imploded final week.
In a brand new interview, Marszalek says his change’s concentrate on the retail a part of the enterprise distinguishes it from Sam Bankman-Fried’s embattled firm.
“Basically there are two enterprise fashions within the cryptocurrency house, proper? One is the brokerage mannequin, the place our platform, for instance, is a counterparty to the transaction, and each time our customers purchase or promote crypto, we instantly hedge the opposite place to have zero market dangers, and we take a price for offering the entry to it. That is 95% of our enterprise. That’s additionally 95% of the enterprise of Coinbase.
And the opposite mannequin is taking a price on an change the place individuals commerce tons of of tens of millions of {dollars}. Excessive-volume merchants.”
Marszalek additionally says mixing up hedge fund companies and exchanges is a “horrible concept” that ought to be outlawed.
Following the insolvency of FTX, a number of crypto exchanges, together with Crypto.com, got here ahead exhibiting their reserves in a bid for transparency.
Even earlier than the newest crypto crash, Crypto.com had confronted headwinds of its personal in current months. In early June, Marszalek said on Twitter that the change had plans to put off 260 individuals, or about 5% of the corporate’s workforce.
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