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The AFL is sticking by its Crypto.com partnership amid fears the corporate could possibly be caught up in a market spiral after the collapse of FTX.
Final week FTX, one of many world’s largest cryptocurrency exchanges, filed for bankruptcy after the worth of its cryptocurrency collapsed, triggering the crypto equal of a financial institution run, with traders in search of to withdraw their funds from the platform.
The corporate’s co-founder Sam Bankman-Fried resigned final week saying he had “fucked up”, as his reported wealth declined from US$16bn to US$3.
The collapse has already had implications for the broader cryptocurrency sector, with the worth of Bitcoin declining from US$20,000 to US$16,600 because the information broke. Specialists have predicted the FTX collapse will make it tougher for the broader sector to recuperate from current falls.
Earlier than FTX filed for chapter, there was a growth in sponsorship preparations between sport and cryptocurrency companies.
Mercedes F1, Miami Warmth and the Worldwide Cricket Council all suspended their sponsorship offers with FTX within the wake of the corporate’s troubles.
In Australia, the AFL signed a five-year take care of the Singapore-based Crypto.com earlier this 12 months. It included sponsorship offers with 4 AFL golf equipment, and Crypto.com turned the “official cryptocurrency trade and cryptocurrency buying and selling platform” for the AFL and AFLW.
A spokesperson for the AFL advised Guardian Australia there had been no change to the partnership.
The CEO of Crypto.com has rejected strategies his firm may fall to the identical destiny as FTX.
Kris Marszalek, in an impromptu “ask me something” on YouTube on Monday, mentioned that FTX’s collapse did set the business again “a very good couple of years” when it comes to status, however mentioned Crypto.com was “the only most regulated firm” within the sector, with licences or regulated entities in Europe, the UK, Canada, Singapore and Australia.
“Our platform is performing enterprise as ordinary,” he mentioned. “Persons are depositing, persons are drawing, persons are buying and selling.”
He mentioned the enterprise practices that Crypto.com have interaction in are very totally different to that alleged about FTX.
“We by no means engaged as an organization in any irresponsible lending practices,” he mentioned. “We by no means took any third-party dangers, we don’t run a hedge fund, we don’t commerce prospects property, we all the time saved one-to-one reserves.”
He mentioned Crypto.com had a “tremendously sturdy stability sheet” and would show mistaken the individuals claiming the corporate was in bother.
“I’ve been saying it for a couple of years and what I can say is that we are going to do what we’ve all the time executed – we’ll show individuals mistaken with our actions and never our phrases,” he mentioned.
“So in a few months all these guys are going to look now actually, actually dangerous for throwing allegations which have completely no substance.”
Crypto.com has been coping with issues over mistaken transactions previously few months. It has been seeking to recoup funds from a couple in Australia after the corporate by chance despatched them $10.5m as a substitute of a $100 refund.
Prior to now week, the corporate mentioned it by chance transferred $404m price of Ethereum to a pockets linked to the Gate.io crypto platform. The foreign money has since been recovered.
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