Investing.com– Chronos (NASDAQ:), the native Crypto.com token fell to its lowest level in 22 months on Monday, amid growing scrutiny from centralized exchanges following the collapse of major player FTX earlier this month.
fell 28% to $0.0557, halving over the past week as investors feared a potential liquidity crunch similar to that seen at FTX.
Concerns about the exchange’s financial situation escalated over the weekend after on-chain data showed it accidentally sent around 82% of its Ethereum reserves, or about $400 million, to a Gate.io-linked wallet in October.
Although the funds were recovered, traders said the transfer contradicted Crypto.com’s claims that all user funds are kept offline in cold wallets.
The exchange, which also recently revealed its cryptocurrency reserves, has drawn criticism for having more than 20% of its reserves in the cryptocurrency.
These revelations came shortly after the collapse of FTX, accused of embezzling client funds and being unable to meet withdrawals. Sentiment towards centralized operators such as Crypto.com has been severely shaken by the meltdown, with several industry players calling on traders to shift their funds out of centralized exchanges.
Binance CEO Changpeng Zhao also lashed out at Crypto.com, warning users to “stay away”.
While Crypto.com CEO Kris Marszalek assured traders that their funds were safe, a growing number of social media influencers advised users to withdraw their funds from the platform.
CRO losses far exceeded declines in the broader crypto market over the past 24 hours. , the world’s largest cryptocurrency, the US dollar plunged 4% and hovered around its lowest level in two years, while lost 6%.
Tokens from other centralized exchanges also fell. lost almost 5%, while lost 6%.
Cryptocurrency markets were in freefall last week after FTX, the third-largest exchange in the space, declared bankruptcy and suspended client withdrawals. Attention is now turning to other entities exposed to the exchange, with lender BlockFi recently suspending withdrawals due to its exposure to the struggling exchange.
By Ambar Warrick