- CDC hold 1-to-1 in reserve, i.e. if customer buys 1 bitcoin, CDC will hold equivalent 1 bitcoin in reserve
- CDC doesn’t use client funds/crypto or Cronos (CRO) as collateral for loans, unlike what FTX did with their native token FTT
- CDC makes 90+% of their revenue from transaction fees
FTX has officially filed for Chapter 11 bankruptcy protection, sparking chaos in the crypto world. Everyone seems to be scrambling to withdraw their crypto off centralised exchanges or even just liquidate everything.
Sh*t got real for me when rumours were circling that Crypto.com (CDC) might be next, quoting data showing a spike in withdrawal volume off the platform. My crypto is split roughly half-half between CDC and Coinhako.
Kudos to CDC CEO Kris Marszalek, who did an Ask Me Anything (AMA) on 14th Nov 2022 to address the FUD in the media and questions posed by the public. Here are the key points I took down:
