- Crypto.com has revealed that it holds the second-largest stash of Shiba Inu (SHIB).
- Market interest and continued project developments signal a massive bullish rally in the long term.
Shiba Inu (SHIB) has been revealed to be the second largest holding of users of Crypto.com. The crypto exchange, which is one of the leading trading venues for retail crypto investors, shared new details of its reserve that show that SHIB makes up 20 percent of users’ funds held on the exchange.
This put the value of SHIB held by the exchange at about $540 million of Crypto.com’s over $2.7 billion worth of token holdings according to the Nansen dashboard the exchange put together. Bitcoin (BTC) emerged as the biggest reserve asset of the exchange at 31.19 percent while Ether (ETH) came third accounting for 16.97 percent of the exchange’s reserve.
JUST IN: #CryptoCom CEO and founder @kris just released their "Proof of Reserve"… they hold more $SHIB than $ETH. 👀 pic.twitter.com/vv8he37ZGB
— SHIBA INU (@ShibInform) November 11, 2022
In a tweet, Crypto.com’s CEO Kris Marszalek said that the exchange will disclose a more detailed audited breakdown of its reserve that will confirm the full 1:1 backing of customers’ assets.
“Please expect a full audited Proof of Reserves from us in the next couple of weeks, confirming the full 1:1 reserve of all customer assets,” he wrote.
The disclosure is coming after the exchange promised users more transparency in the wake of FTX going bankrupt. Marszalek also assured users that Crypto.com’s exposure to FTX was less than $10 million — a figure he considers to be “very little compared to our global revenues surpassing $1 billion for two consecutive years.”
Our direct exposure to FTX meltdown is immaterial: less than $10m in our own capital deposited there for customers’ trade execution.
That’s very little compared to our global revenues surpassing US$1 billion for two consecutive years.
— Kris | Crypto.com (@kris) November 9, 2022
In a similar move, the largest exchange by trading volume Binance has also published its cold wallet addresses. Binance’s CEO, Changpeng Zhao has advised market participants on signs of trouble to watch out for at crypto firms.
How high can SHIB climb with such strong investor confidence?
The Crypto.com revelation of huge SHIB reserve holdings has not played out to be bullish for the Ethereum-based Dogecoin competitor. Per data from CoinMarketCap, the price of SHIB has fallen 3 percent in the last 24 hours to currently be trading at around $0.0000096.
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This price is notably an about 89.1 percent drop from the all-time high price of $0.000087 reached over a year ago in Oct. 2021. Regardless, SHIB proponents have remained long-term confident of the potential of the token to surpass a price tag of $1 and even reach $5.
This is because of the rapidly evolving Shiba Inu ecosystem that includes a highly anticipated metaverse in the works, growing adoption as an accepted method of payment, and token burns that are reducing the circulating supply of the token.
