The troubled exchange FTX’s native token, FTT, is among assets held by cryptocurrency exchange Kraken, as per a press release by the firm today. The firm claimed to have no exposure to Alameda Research in the recent revelation amidst the ongoing crisis, which has specifically posed a big blow to FTX and Alameda.
According to Kraken’s statement, the firm has not registered the FTT token on their spot or futures markets exchanges while further affirming that it was not affected by the current FTX news in any significant manner. This comes as more and more crypto firms seem to be backing off from Alameda and FTX to dodge the current market crisis.
Kraken’s announcement details
Kraken saw the need to explain its system’s position due to the arising questions brought about by the crisis. The firm stated that:
“We wanted to clarify the measures we put in place to make sure that the assets on our exchange remain available to you at all times, but especially during times of uncertainty, in light of the current conversation around solvency.”
The cryptocurrency company clarified that Kraken held roughly 9,000 FTT tokens on the FTX platform. The company was pleased to see that it had long held the top spot in terms of openness. When Kraken engaged Armanino LLP, one of the top 25 worldwide accounting firms, to conduct two Proof of Reserve audits within the last year, the company claimed to have invented the use of routine asset audits.
“We are one of the first exchanges to consistently execute these cryptographic audits, which are more accurate and unchangeable than any other type of financial statement.” Kraken stated.
Cryptographically, Proof of Reserve audits demonstrates that Kraken was in position of the assets the company is holding on behalf of its clients. Kraken believes it will be hard for conventional financial institutions to carry out the procedure. The company further states that cryptocurrencies’ open and transparent nature made it possible to provide these accurate audits consistently.
Since the establishment of the process, Proof of Reserve audits have been released every other year. This, by far, has been the companies’ method of demonstrating their dedication to safeguarding clients’ funds in connection with their exchange and staking services.
“We feel this transparency is very crucial to the sustainability of the wider crypto ecosystem and we urge others to follow our lead,” Kraken said in its last remarks.
According to the audit, Kraken securely held the qualifying assets to levels that occasionally exceeded 100% of the necessary balance. For whales that hold investments in the Kraken account during the most recent Proof of Reserve audit, Kraken has created a check portal so they may check their balances in case they have any questions.
Fear creeps all over the ecosystem.
The announcement comes as there is much conjecture about which businesses may be impacted by the shocking collapse of FTX, either through stock investments, loans, or money kept on the exchange. On November 8, FTX disclosed that the company had consented to be acquired by competitor Binance. However, the deal was scrapped when Binance examined FTX’s financials.
In the last 24 hours, many cryptocurrency powerhouses and other businesses have released statements on their exposure to FTX as more are expected to follow suit. According to the latest news on Sequoia Capital, $213.5 million in stock investments made in FTX by two of its funds are now essentially worthless.