Based on blockchain analytics agency Nansen, Crypto.com has a complete onchain portfolio of practically $6 billion, with memecoins together with SHIB, PEPE, FLOKI, LADYS, and MOG making up greater than 15% of the alternate’s token reserves held for patrons.

Within the midst of a memecoin frenzy, with market sentiment generally dominated by the whims of a lot of these cryptocurrencies, one alternate stands out for the massive share of its token reserves coming from memecoins. 

Singapore-based alternate Crypto.com holds over $920 million value of memecoins for its clients as of Monday, representing greater than 15% of the alternate’s whole token reserves, in line with information from blockchain analytics agency Nansen. 

 Of Crypto.com’s onchain portfolio, which stands at practically $6 billion, 12% or $718 million comes from dog-inspired memecoin SHIB, 2% or $124 million stems from frog-based memecoin PEPE, whereas 1% or $82 million consists of a number of others corresponding to FLOKI, LADYS, and MOG. 

After BTC and ETH, the 2 largest cryptocurrencies by market cap, Crypto.com holds extra SHIB in greenback phrases than another token, with PEPE because the fifth-largest holding for the alternate, per Nansen. In  Nov. 2020, Crypto.com had practically $3 billion in reserves, of which about 20% or $558 million got here from SHIB.

Learn Extra: Solana’s Memecoin Increase Has Many Recalling Ethereum’s 2017 ICO Mania

“All customer assets held on our platform are fully backed (1:1), safely stored and available for redemption,” states the webpage for Crypto.com. Representatives of Crypto.com didn’t instantly reply to Unchained’s request for feedback. 

Crypto.com’s share of memecoin holdings is “quite eye-opening,” in line with @Ponyongmi, who has been buying and selling crypto since 2020. “It shows they’re betting aggressively on these high-risk, high-reward tokens, mirroring the attitude many young people in the industry have towards investing.” 

“Crypto.com is meme-forward, and they list memecoins generally a lot earlier on than other exchanges,” wrote MOG accelerationist @Virotechnics to Unchained over Telegram. “Retail continues to prefer trading memes over most other sectors this cycle, and listing these projects early on is a risk that they take but ultimately something that can be very rewarding for them and their users alike.”

Binance and Gemini Comparisons

As compared, Binance, which has a token reserve valued at $102.9 billion, doesn’t have a memecoin in its high 10 holdings. Nonetheless, PEPE and SHIB do are available in on the eleventh and twelfth place, respectively, representing practically $2.15 billion or 2.08% of all cryptocurrencies on Binance. 

Whereas Crypto.com has the next proportion of memecoins relative to its whole reserves, Binance is holding extra memecoin worth in absolute greenback phrases. Binance additionally holds $521 million value of PEOPLE, BONK, and FLOKI.

Learn Extra: 80% of Tokens on Binance Are Down Since Itemizing Date

In comparison with Crypto.com and Binance, rival US-regulated alternate Gemini not solely holds much less memecoins, but in addition has a smaller share of memecoins in relation to its whole reserves.

PEPE and SHIB are fifth and sixth most liquid cryptocurrencies on Gemini, respectively making up 1.1% of the alternate’s whole holdings, which whole roughly $70.6 million.

“I believe we’ll hit a peak when casinos start integrating memecoin trading on their floors and when large loans backed by memecoins start getting liquidated. Given the current trend, another centralized exchange collapsing due to excessive risk-taking wouldn’t surprise me,” added @Ponyongmi. 

Customers on Crypto.com can margin commerce with at most 10x leverage for over 200 pairs. DOGE and SHIB are eligible collateral for many who wish to margin commerce, in line with the alternate’s web site.

CORRECTION (July 8, 2024 7:12 p.m. ET) Corrects misspellings of “FLOKI.”