The tumble continues in the cryptocurrency market and the difficulties are linked for the crypto exchanges. This is particularly the case for crypto.com, which finds itself increasingly in an uncomfortable situation. Also, investors need guarantees from centralized platforms that still seem to be resilient to the crisis.
Yet, Crypto.com is making unthinkable mistakes that call its security into question. This is all the more incredible since this cryptocurrency brokerage platform has always claimed flawless reliability to reassure its customers.
The too many forwarding error for crypto.com
Crypto.com has become accustomed to news stories having repercussions on the cryptocurrency market.
Thereby, according to cryptocurrency news a few days ago, the company mistakenly made a transaction to the account of another cryptocurrency exchange named Gate.io.
This $400 million USD ETH transaction represents 80% of its Ethereum funds, or 320,000 Ether tokens.
For players in the digital currency industry, but especially for investors, it is unacceptable that a company of this size can afford such mistakes.
Above all, in this difficult period when investors need to have certainty regarding their assets on the platform.
What brings even more fears is that this is not the first time that Crypto.com has made this kind of mistake. Indeed, last year, a crypto.com employee mistakenly transferred a large amount of tokens to an Australian woman who lives in Melbourne.
The total amount of this erroneous transaction was estimated at 7 million US dollars. Fortunately, crypto.com managed to recover the sum from this Australian citizen.
Going back to the recent transaction made by mistake, it came at a very critical time. Not only is the market in crisis. But also, the Crypto.com exchange is gearing up for a thorough audit regarding proof of reserves.
It is for this purpose that the company began by making public a few portfolio addresses. But with this recent error, CEO Kris Marszalek is far from reassuring his clients even though he indicated that the assets managed on his platform have a 1:1 guarantee.
Yet the CEO of rival stock exchange Binance has not been shy about criticizing Crypto.com. He also indicated that the fact that crypto.com moves such large amounts of cryptocurrency while publishing wallet addresses is questionable. For him, the stock exchange would be in full difficulty that it refuses to admit publicly.
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Crypto.com strengthens its security system
Following the various criticisms, the CEO of Crypto.com, Kris Marszalek, tried to reassure his customers even if the latter did not seem to be convinced. Indeed, Kris Marszalek indicated that he has reinforced the security system of crypto.com in order to improve the management of transactions internally.
However, it should be noted that this information from the Crypto.com team did not have the desired effect. Indeed, customers are not always reassured about the reliability of the platform and many are those who are full of it, especially on Twitter.
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