Thread by @_wondertasty_

#Crypto.com? How to fake your Proof of Reserves Season 1.

(1) Let’s dive in:

#Crypto.com's cold wallet – $600М in #SHIB, some #tether, the rest is shit. Shit noone’s ever heard of. That tells us close to nothing.

portfolio.nansen.ai/dashboard/cryp…

(2) “So in a few weeks you think you will have 1:1 reserve to liabilities!” This means you cannot confirm it now, which is generally your job. Not confirming that you have more assets than liabilities makes me consider that you just don’t!

https://twitter.com/kris/status/1591036638763053056?s=20&t=rO8QLlkVPZx5VHnWS1MYFg

(3) Crypto Dot Kaboom, you call that Proof of Reserves? But hey, they say they will be fine. 😎

Proof of Reserves means you show both sides of the book: assets + liabilities. You showed us all only your assets, and they are not a pretty picture for a stadium-owning company.

(4) Who else has a stadium? FTX Miami heat arena, much?

https://twitter.com/MikeBurgersburg/status/1590920663224979456?s=20&t=Wx4jPDF44--d2IIYSJCPXw

(5) Are the $1B in fancy marketing financed with SHIB? Do you pay your movie stars in SHIB? :) Might be, but regardless of the currency, it is your money, that's for sure.

@SouthPark even made fun of you

forbes.com/sites/danidipl…

(6) Onto your balance sheet: It seems very VERY small or I am just greedy?



If they really, REALLY, have 70M active users, then on average each user has $42 on their platform. #SHIB is 20% of their holdings. WOW.

(7) How much can #Crypto.com buy back with clients' SHIB? And where the hell are the liabilities?

https://twitter.com/VersusBtc/status/1591043119277309952

Onto their own baby, $CRO and the bloodbath we are in. 6% APR on $CRO? Seriously?

(8) And now liquidations will be cascading I am also curious about the extent to which they have borrowed against CRO.

A wise guy once said.. Never use a token you created as collateral.

https://twitter.com/cz_binance/status/1590103159506341888?s=20&t=JSL1i4RujGRreuFH-rfHlg

(9) So, what can go wrong: First comes the Purge –Crypto.com already fired 25% of your staff. And they even lied about it at first. Who else was firing – #BlockFi.

Healthy companies don’t do that… as we all see now

blockworks.co/news/blockchai… businessinsider.com/cryptocom-layo…

(10) But the purge is not over as I hear you are cutting even more jobs. Who is gonna support those 70M users, or you just don’t plan to anymore

https://twitter.com/AutismCapital/status/1591108370639224833

(11) Wait till that shit they have piled up in their wallets starts to dip. Then they will have 70M bag holders, and they will dump at some point. We’ve seen this story before, haven’t we?

(12) What else can go wrong? I bet Crypto dot kaboom has done the FTX shitshow, and borrowed $$$$ against those shitcoins plus their own which is liquid as fuck. Nah, they say they will be fine. 😎

(13) Fortune Favors the Brave not the greedy. This hellfire will purge all of you greedy bad actors. Shut the door. Get some popcorn.

#CDC