As we know, after the recent events that exacerbated an already bear market phase, several cryptocurrencies were affected, including Cronos (CRO), the utility token of the Crypto.com cryptocurrency exchange platform.
In fact, in recent weeks, Cronos has been declining with drops of up to 50%, starting at a price of $0.11 on November 8 and reaching $0.05 on November 14.
also croTherefore, many of the victims who followed the FTX stock market crash do not escape notice, which also marked a significant drop in cryptocurrencies such as Bitcoin and Ethereum or for companies such as Genesis and BlockFi.
Crypto.com’s CEO is reassured, but Cronos’ (CRO) performance remains worrying
Chris MarsalekCEO of the stock exchange encryption. comrecently reassured his clients about the $1 billion capital transferred to FTX, claiming that it has been fully recovered.
In addition, the CEO emphasized that the company’s exposure is just that Ten million dollars.
In fact, Marsalek told users that the exchange would not stop withdrawals and denied the words of those who accused him of using the exchange’s native token as collateral for his loans.
However, it is worth noting that experts argue that cryptocurrencies will continue to fluctuate as a result of the ongoing impact of the bear market and are now exacerbated by the detrimental effect caused by FTX.
However, even if it was FTX breakdown Experts argue that having no effect on the business capacity or profitability of Crypto.com, the price of Cronos has been and continues to decline. The latter is the factor that worries investors and that, more generally in the cryptocurrency market, has created a great deal of mistrust.
As expected, the Kronos price peaked on November 14th, about a week after the FTX crash. recording the lowest level of $0.05.
However, just two days later, on November 16, the price seemed to stabilize and rebound to around $0.07. Throughout the week, the CRO price was more or less stable, continuing to fluctuate between $0.06 and $0.07 until Saturday, November 19th.
The variance for the past seven days was -6.24%. To understand the significant price drop of Cronos, it is important to remember that on November 8th, when FTX closed for withdrawals and the subsequent rush of selling crunched the market, the CRO recorded a price of $0.11.
Today, November 21, the price of Kronos is around $0.06, with a 24-hour trading volume of $38.63 million. Specifically, the CRO rate was -7.49% in the last 24 hours. It is currently -15.53% off its 7-day high of $0.07, and 3.18% off its all-time 7-day low of $0.06.
Not only Kronos, there are those who also suffered severe consequences after FTX
The collapse of FTX has brought the entire crypto industry to its knees, resulting in a worrying drop in prices not just for Cronos. Specifically, bad luck befell Genesis, the institutional trading company.
Which, on November 11, claimed to have $175 million locked up in its FTX trading account. However, the trading company has made it clear that this exposure is unrelated to the business and will not hinder its operations. Determine that this factor has no influence on market making activities.
He also joined Genesis BlockFi, a cryptocurrency lending firm, which acknowledged significant exposure to FTX and its associated corporate entities. However, the company denied rumors that most of its assets are held on the FTX exchange.
Back on November 11, in fact, BlockFi restricted the activities on its platform and stopped customer withdrawals, advising the latter not to deposit into BlockFi wallets or interest accounts.
Only Nexo, the digital platform that offers cryptocurrency lending, said recently To grant a small loan to Alameda Research. Although the company has confirmed this The amount was less than 0.5% of the total assets.
It appears that the loan was fully secured by digital assets and was sold according to an issuance. In addition to, The company managed to avoid a potential loss of $219 million By withdrawing the entire amount from the FTX exchange.
Besides these deeply discussed situations, overall, the FTX bankruptcy filing estimates that the exchange has more than 1 million creditors. Therefore, the situation is critical for many companies that belong to the crypto world.
Despite the possibility of recovery, since it is not the first time that the market has found itself in critical situations, it is difficult to estimate how and when this will happen, since every situation is different, and in particular, the case of the FTX exchange is unique.