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November 11, 2022, 10:53 am EST
According to a wallet published by Crypto dot com CEO Kris Mars Marszalek on his official Twitter feed, 20% of all reserves at the exchange are held in the highly speculative memecoin shiba inu (SHIB).
As fear of crypto contagion from the FTX meltdown spreads, Marszalek seems eager to prove that any exposure to the crisis is limited, and shared links to a Nansen dashboard that illustrate over $2 billion in reserves.
However, market observers will be concerned that a coin with no obvious utility and a history rooted in dog memes is so heavily featured in that breakdown.
Bitcoin accounts for 30.67% of the total reserves, while ether is 17.32%. Only 11.99% of the reserves published are held in stablecoins USDC and USDT.
It’s the 19.77% of reserves held in SHIB that will raise eyebrows.
Each shiba inu token has a current value of $0.000000979 this morning, representing a market cap of $5.7 billion. CoinGecko data showed that Binance and Coinbase had trading volumes of around $32 million and $25 million respectively.
SHIB also briefly flippened Solana’s token SOL this week as market participants worried about the close ties of the Solana ecosystem to FTX and Alameda.
Australian exchange CoinJar decided to delist CRO, the native token of Crypto dot com, earlier this week, explaining that “In light of recent events, we have decided that [Crypto dot com] Coin (CRO) no longer meets our listing requirements. Unfortunately, we have to take this action on short notice due to ongoing market volatility.”
Blockworks has reached out to Crypto dot com for comment.
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- Jon Rice
Blockworks
Editor-in-Chief
Jon is the editor-in-chief at Blockworks. Previously, he served as editor-in-chief at Cointelegraph, where he also created and edited the long-format magazine publication. He is the co-founder of Crypto Briefing, which launched in 2017.
He is a staunch advocate for diversity, inclusion and equal opportunity in the blockchain industry, and a firm believer in the potential for personal empowerment offered by the democratization of financial markets.
Source: https://blockworks.co/news/funds-are-shib-crypto-dot-com-reserves-are-20-memecoin/