This might be a job for Jason Bourne. Actually, the character most connected to Matt Damon might not be able to help the company that Damon is most famously connected to.
Since the curly-haired boy genius turned cautionary tale named Sam Bankman-Fried ran FTX into the ground and fled the country, the crypto world is wondering who will be next.
And all eyes seem to be on crypto.com, wondering what their exposure to FTX and its bankruptcy could be.
Getting too close to Bankman-Fried could prove to be a fatal move for other executives. Reuters reported that Bankman-Fried transferred $10 billion of FTX customer funds into his cryptocurrency trading platform Alameda Research.
Kris Marszalek, the CEO of crypto.com, said that his company had less than $10 million in exposure to FTX when it went bankrupt. That’s a fraction of what other investors lost with FTX; Sequoia Capital is out $210 million, and Softbank lost around $100 million.
Marszalek said that his company had sent $1 billion to FTX for stablecoins they purchased. Still, he added that his company had recovered most of that $1 billion before the November 11 bankruptcy.
Here’s the bad news for crypto.com — there appears to be a massive sell-off taking place of its token called Cronos. It is down 41.6% in the past week, according to reports and data from CoinGecko.
What’s worse is that the token is down almost 93% from its all-time high; that makes investors have sleepless nights wondering if a lack of liquidity could take down another crypto company.
A spokesperson for the company thestreet.com said that the price of CRO will have no impact on liquidity or future profit margins.
We’ll see.
Until then, crane operators in Los Angeles should be on standby, just in case they need to remove the massive signage on the downtown home of the Lakers, formerly known as Staples Center, that crypto.com spent $700 million on renaming.
Matt Damon’s days as a brand ambassador might be numbered as well.
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