Crypto.com CEO Kris Marszalek says exchanges could potentially protect consumers more amid market volatility at the cost of low-cap crypto assets.
In a new interview on CNBC’s Squawk Box, Marszalek says that the meltdown of FTX is causing liquidity problems that could lead to crypto exchanges pulling out support for smaller coins in their platforms.
“If you see the liquidity evaporate in the market, what is going to happen is the smaller currencies that are really illiquid are facing a risk of being delisted from different exchanges in an effort to protect the consumers.”
Following the collapse of FTX, Marszaleksays assures investors of the financial health of his company.
“We are very well capitalized. We are very transparent with our reserves and also we have a bond sheet and we have zero debt and zero leverage in the business and we are cashflow positive.”
Marszalek says that all industry players should do their part to regain trust for crypto and part of the work is to engage with regulators.
“What worries me is the impact of this collapse in the whole industry, and I think it goes back a couple of years in terms of the industry’s representation and all of the players have to collectively work on transparency, engaging regulators around the world to make sure consumers are protected.”
I
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inboxFeatured Image: Shutterstock/linabob/WindAwake