Crypto.com holds 20% of its reserves in Meme Token SHIB

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Well-known cryptocurrency exchange Crypto.com revealed today that it holds 20% of its reserves in the Shiba Inu Token (SHIB), a highly speculative coin.

Data from blockchain analytics firm Nansen shows that the platform holds the largest share (31%) of its digital assets in Bitcoin, followed by SHIB at 20%. Data from Nansens reveals that Crypto.com owns around $570 million of the Ethereum-based meme coin.

Crypto.com’s reserves also feature a significant amount of Ethereum itself, accounting for around 17% of the company’s holdings, while stablecoins Tether (USDT) and USDC each make up around 5% of the exchange’s reserves. . Various other cryptocurrencies and tokens collectively make up another 20% of the total.

The exchange revealed its reserves through a table of wallet addresses, which Nansen then collated into a single dashboard. Crypto.com CEO Kris Marszalek confirmed the dashboard data via a tweet and said the exchange will provide additional details on all of its holdings in the coming weeks.

The news comes as FTX, one of the largest and most important cryptocurrency exchanges, went bankrupt this week following a major liquidity crunch. This has led the White House to call for greater regulation of the industry and currently leaves clients with inaccessible assets potentially worth billions of dollars on the FTX platform.

SHIB is the 14th largest cryptocurrency in the world with a market capitalization of $5.7 billion, according to data from CoinGecko. It’s an ERC-20 token, meaning it runs on the Ethereum network and a competitor to Dogecoin, the original meme coin that grew in popularity and notoriety as Elon Musk latched onto it.

Meme coins are cryptocurrencies and tokens usually inspired by internet memes. They often have no significant functional utility and their prices can change rapidly and dramatically.

SHIB is rapidly swinging up and down and is currently worth $0.000009774634 per token, which is 88.6% below its all-time high. In 2021, its market capitalization briefly exceeded $41 billion, giving it a higher market capitalization than many S&P 500 companies.

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