This Exchange Holds 20% of its Reserves in Shiba Inu

12 November 2022, 07:30 GMT+0000
Updated by Kyle Baird
12 November 2022, 07:46 GMT+0000
In Brief
  • According to a Proof of Reserves dashboard, Crypto.com holds nearly $570 million in Shiba Inu.
  • The total reserves with the exchange are over $2 billion — of which $900 million are allocated to Bitcoin.
  • Cronos, the native token of Crypto.com, is down by almost 12% in 24 hours.
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The CEO of a popular exchange released a Proof-of-Reserves that reveals the second largest holding of its reserves is in Shiba Inu.

The downfall of the FTX exchange, from the second-largest exchange to bankruptcy, has increased the demand for transparency from crypto exchanges.

The blockchain oracle platform, Chainlink, presented a protocol dubbed ‘Proof-of-Reserve’ to enable reliable and timely monitoring of reserve assets. It performs automated audits to provide transparency to users.

Crypto.com holds $570 Million in Shiba Inu

Kris Marszalek, the founder and CEO of Crypto.com, released a dashboard of its Proof-of-Reserves that shows Shiba Inu (SHIB) as the second largest reserve holding. The total reserves with the exchange are worth over $2 billion, out of which it holds almost $570 million in SHIB.

Community Reaction to Crypto.com Shiba Inu Allocation
Source: Twitter

Its largest allocation is in Bitcoin, worth nearly $900 million, and makes up over 30% of the portfolio. Whereas the third largest allocation is in Ethereum, worth nearly $500 million. Ethereum makes up over 17% of the reserves holdings. The USDC and USDT stablecoins also make up just over 5% of its allocation each.

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Token allocation of Crypto.com Data by Nansen
Source: Nansen

What does the founder have to say about their reserves?

Kris Marszalek has tweeted, stating that this represents only a portion of their reserves. The exchange will release a fully audited Proof-of-Reserves over the next couple of weeks. It also wants to work in a spirit of full transparency and remain a secure platform.

Shiba Inu (SHIB) is trading nearly 90% down from its all-time high of $0.000088 in September 2021 levels and is down by 3% on the day at the time of press.

Meanwhile, Cronos (CRO), the native token of Crypto.com, is down by almost 12% in 24 hours. It is currently trading at $0.0821.

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Disclaimer

BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.