December 4, 2022

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Will Crypto.com Fail? A wave of withdrawals has begun from a trend on Twitter

Crypto.com, one of the world’s largest cryptocurrency exchanges and the world’s largest network of credit cards with crypto cashback (through the Cronos token, CRO), is, according to several industry experts, experiencing a “banking experience” that appears to be a failure to deal.

If this is confirmed, the reason will be very serious: it means that Crypto.com does not actually hold the cryptocurrencies deposited by customers.

Many industry experts talk about impending bankruptcy, if only for hours. Meanwhile, the CRO token is collapsing, indicating that users are trying to dump the token en masse and/or the company is selling tokens in the marketplace for cryptocurrency or cash to fulfill withdrawal requests.

Tweets and social messages in the last few hours on Crypto.com bankrun

Below is a series of tweets and social posts regarding the story. Comments are split between finding a bank (running to the counters) in progress and calling for them not to hold their cryptocurrency on the exchange. It is clear that all these messages have the effect of contributing to the polarization of the phenomenon they describe

There is no shortage of comments mentioning how, in the face of the banking phenomenon, traditional banks may be pushed into bankruptcy by their customers:

We can attest firsthand that out of two withdrawal requests made during this afternoon, November 13, 2022, only one request from Ethereum succeeded while the one in Bitcoin did not.

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Remember that it is never a good idea to leave cryptocurrencies in exchange wallets (in fact they should always be kept in a private and local wallet), we will continue to follow the development of the story.