Is Crypto.com engaging in proprietary trading? Recent reports allege that Singapore-based crypto exchange Crypto.com (disclosure: a sponsor of Unchained) deploys internal teams to trade tokens for profit, the Financial Times reported late last week. This has led to significant scrutiny and raised questions about transparency and potential conflicts of interest within the platform.

Crypto.com Internal Trading Allegations: What We Know

The core of the controversy centers around claims that Crypto.com is alleged to be conducting internal trading operations. Anonymous sources have told FT that the top crypto exchange headquartered in Singapore runs its own, dedicated trading desks. These teams, according to the report, are actively trading various crypto assets with the goal of generating profit for the company.

Financial Times Report Details Crypto.com Trading Practices

Crypto.com has been called out for allegedly deploying internal teams to trade crypto assets for profit. Citing five unnamed sources with “direct knowledge of the matter,” Financial Times shed light on what appears to be a deliberate strategy of profiting from market fluctuations using internal resources. This raises concerns about potential market manipulation or unfair advantages.

The report further elaborates that the Singapore-based group reportedly established these internal teams to capitalize on price movements within the volatile cryptocurrency market. While many crypto exchanges engage in market making activities, the scale and scope of Crypto.com's alleged internal trading operations have drawn criticism.

Impact and Concerns Regarding Crypto.com's Internal Trading

Major cryptocurrency exchange Crypto.com has come under scrutiny for deploying internal teams to trade tokens for profit. The main concern revolves around the potential for insider information to be used to gain an unfair advantage, potentially harming retail investors. The lack of transparency surrounding these alleged internal trading activities has fueled further speculation and distrust.

The situation warrants close monitoring by regulatory bodies to ensure fair market practices within the cryptocurrency industry. The outcome of any potential investigations could have significant implications for Crypto.com and the broader crypto market.