Are Huobi, Crypto.com and Gate.io Under Fire?
How safe do you feel the centralized exchanges are? Are they playing games all the time? After FTX collapsed, different exchanges try to show that they have the reserve that are supposed to be there. So everything is fine. You can trust them and keep doing transactions on their exchanges.
No one wants to lose their crypto like many people did in FTX recently. Crypto exchanges show that they have funds, but a large amount of crypto transfers back and forth after or before sharing snapshots.
Huobi exchange wallet was found to transfer 10K ETH to Binance and OKX deposit wallets. It happened just after sharing their assets snapshot. Do you think it's nothing and they have the funds that they show?
FTX acted like a savior of BlockFi and other platforms like this, but FTX had to show its true color eventually. Many people get rekt putting their crypto and trust on FTX. They say something and do something else behind the scene. Sometimes when people find out about that, it becomes too late.
Gate.io and crypto.com made some huge transactions back and forth. That's not a small amount. Crypto.com transferred 320K ETH from its cold storage wallet to the Gate.io wallet. So that's a mistake, right?
According to Crypto.com CEO Kris Marszalek, they wanted to send 320K ETH to a new cold wallet address but accidentally transferred that to the Gate.io wallet address. It was also confirmed that ETH was returned to Crypto.com cold wallet.
But Gate.io only returned 285K ETH to Crypto.com cold wallet whereas the rest of 35K ETH was transferred to a different wallet address. Is that different wallet address belongs to crypto.com? That is not confirmed yet.
Is Crypto.com the next FTX?
What's going on in crypto-centralized exchanges, that's terrible. People will find it hard to trust any crypto exchange. Decentralized exchanges will be more popular in the future. You don't have to rely on those CEX anymore and things will get better in the future.
So what do you think? Please feel free to leave your comments. Thank you for reading this post. That's it for now. I'll be back with another post.
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What I know Crypto.com is limited in number of countries unlike Gate IO or Huobi. Means not the next FTX as the volume per transaction is limited per country. Many airdrops pays to Huobi UID or Gate IO UID which both of them are verified for my case.