The crypto space is currently in bad tidings following the downfall of one of the most popular centralized cryptocurrency exchanges (FTX) within the week. As a result, the BTC price has plummeted to a very low level near $15,000.This, as usual, has affected the entire cryptocurrency market. While scrolling through Twitter, I came across a tweet by a user (Travladd Crypto) that sounded both funny and informative. It was a fun tweet about crypto.com and gate.io. It read as:
Never lose hope, crypto.com sent 300-400M to Gateio, maybe one day, they'll send it to you...
After I did my consultations on Cointelegraph and other platforms just to understand what the tweets meant, I realized there was a serious case involving those exchanges mentioned. Crypto.com and Gate.io are all centralized exchanges with millions of users. Because of the recent FTX exchange disaster, many crypto investors and traders began to lose interest in other centralized exchanges, fearing that they, too, were forging their reserves. This required the proof of reserves required by the majority of exchanges to sustain their user communities. The majority of cryptocurrency exchanges started listing their cold and hot wallet addresses for public accountability on their reserves.
Unfortunately, on the part of crypto.com, there was a suspected movement of funds worth over $400 million in ETH to the gate.io exchange as users tried to confirm the availability of funds in the exchange. Meanwhile, the exchange claims that 100% of user funds are held in offline wallets. This has attracted the attention of their user community on Twitter. The reply from the CEO of crypto.com (Kris Marszalek) indicated that the transaction was accidental, as the funds were supposed to be sent to a new cold address instead of the gate.io exchange. He added that the transferred funds represent 82% of their ETH holdings.
As of the time of writing this, the funds had already been transferred back to crypto. om. These current happenings should be a worry to crypto lovers. I encourage anyone seeing this to be careful with the exchanges they use. I believe that the storm will pass and the market will get back to normal.
Thanks for your time.
Notice
written by 