Crypto.com CEO Kris Marszalek says his trade operates in a different way than FTX, the digital asset buying and selling platform that famously imploded final week.
In a brand new interview, Marszalek says his trade’s give attention to the retail a part of the enterprise distinguishes it from Sam Bankman-Fried’s embattled firm.
“Primarily there are two enterprise fashions within the cryptocurrency house, proper? One is the brokerage mannequin, the place our platform, for instance, is a counterparty to the transaction, and each time our customers purchase or promote crypto, we instantly hedge the opposite place to have zero market dangers, and we take a charge for offering the entry to it. That is 95% of our enterprise. That’s additionally 95% of the enterprise of Coinbase.
And the opposite mannequin is taking a charge on an trade the place folks commerce tons of of hundreds of thousands of {dollars}. Excessive-volume merchants.”
Marszalek additionally says mixing up hedge fund companies and exchanges is a “horrible thought” that ought to be outlawed.
Following the insolvency of FTX, a number of crypto exchanges, together with Crypto.com, got here ahead displaying their reserves in a bid for transparency.
Even earlier than the newest crypto crash, Crypto.com had confronted headwinds of its personal in latest months. In early June, Marszalek mentioned on Twitter that the trade had plans to put off 260 folks, or about 5% of the corporate’s workforce.
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