Not long ago, FTX was one of the largest exchanges in the world. Today it was announced that the exchange is bankrupt. In an instant, FTX has completely gone down the drain, and crypto investors are rightfully anxious. A lot of mistrust now goes out to other exchanges. Are they also not in order, and should I perhaps send my crypto coins somewhere else? Crypto Insiders asked how it is bitvavo for and the Dutch exchange has some reassuring announcements.
Bitvavo comes out unscathed
In response to the FTX fiasco, many exchanges have indicated that they are willing to proof-of-reserves to publish. Binance, OKX and Crypto.com, among others, will soon announce exactly what is in their reserves. Bitvavo also says it plans to do this in a transparent way:
“At the moment we are indeed also investigating the possibilities of providing our customers with reassurance in a transparent way about the reserves held by Bitvavo.”
In addition, Bitvavo indicates that they are currently not experiencing any problems with the withdrawal of money by users. The exchange also had absolutely no ties to FTX or Alameda Research and therefore did not suffer any direct damage from the demise of these two companies. Bitvavo also makes a profit:
“In the news surrounding FTX, we read that some other crypto service providers may be having a hard time and are stopping withdrawals. This is not the case with Bitvavo. Bitvavo has no business ties with FTX or Alameda and is therefore not affected by what is currently happening at FTX. Bitvavo is financially healthy and has been making a profit since its inception.”
The Dutch exchange also indicates that the situation at FTX has again confirmed that taking unnecessary risks has no place in the business of the company:
“The situation at FTX confirms our way of doing business, which is set up in such a way that we do not take unnecessary risks. At Bitvavo, the security and continuity of the service is paramount. Our healthy financial position enables us to continue to offer the continuity and quality of service that our users have come to expect from us, even during less favorable market conditions.
Bitvavo user credits are even insured
In the unlikely event that something catastrophically goes wrong, Bitvavo’s user credits are even insured. In total, the company has taken out insurance policies with external parties for an amount of no less than €225 million. Users’ assets are also placed with a separate foundation that is completely separate from Bitvavo. The financial results of the exchange therefore have no influence on the funds that are kept with this separate foundation.
Finally, Bitvavo also gives a guarantee on crypto credits up to €100,000 in the case of, for example, a hack.
All in all, it seems that Bitvavo users have nothing to worry about. It is extremely unlikely that the exchange, like FTX, will go under in the foreseeable future. Want to read more about the exchange? Find here the Bitvavo review conducted by Crypto Insiders.
