Funds Are SHIB? Crypto.com Reserves Are 20% Memecoin

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In a surprising revelation that has sparked debate across the crypto community, Shiba Inu (SHIB)—a once-dismissed memecoin—now makes up nearly 20% of Crypto.com’s total exchange reserves. This eye-catching statistic emerged from a public wallet analysis shared by Crypto.com CEO Kris Marszalek, raising questions about risk exposure, transparency, and the evolving role of meme-based digital assets in major crypto platforms.

👉 Discover how memecoins are reshaping exchange reserve strategies in 2025.

Understanding Crypto.com’s Reserve Composition

As of November 2022, data pulled from a Nansen dashboard linked by Marszalek showed that 19.77% of Crypto.com’s reserves were held in SHIB, surpassing even stablecoins like USDC and USDT in allocation. For context:

This means that one of the world’s most prominent centralized exchanges holds more SHIB than it does in top-tier stablecoins—despite the token’s highly speculative nature and origins as a Dogecoin-inspired joke.

A spokesperson for Crypto.com clarified the reasoning:

“The reason our Proof of Reserves include Shiba is because we hold customer balances 1:1. Thus, our Proof of Reserves are dictated by our customer holdings.”

In essence, the exchange isn’t making aggressive investment decisions with SHIB—it's reflecting actual user deposits. If customers are buying and storing SHIB, those balances appear in the platform's reserve audits.

Still, the optics are striking. At a time when trust in centralized exchanges was already fraying due to the FTX collapse, such a high concentration of a volatile memecoin raises eyebrows among investors and analysts alike.

Why SHIB’s Role Matters in 2025

While the original report dates back to 2022, its implications remain relevant today. The presence of SHIB in major exchange reserves underscores a broader trend: memecoins have cemented themselves as a permanent fixture in the crypto ecosystem.

With a current market cap hovering around $5.7 billion** and individual token value at approximately **$0.000000979, SHIB may seem trivial in price—but not in influence. In fact, during periods of market turbulence, SHIB briefly overtook Solana’s native token (SOL) in trading volume, fueled by concerns over Solana’s ties to FTX and Alameda Research.

This shift reflects changing market psychology: when confidence wanes in complex blockchain ecosystems, retail investors often turn to familiar, community-driven tokens—even if they lack utility.

Core Keywords:

Proof of Reserves: A Tool for Trust or Misleading Metrics?

The concept of Proof of Reserves (PoR) gained widespread attention after the FTX implosion exposed systemic failures in asset verification. PoR aims to restore trust by proving that exchanges actually hold the funds they claim to safeguard.

However, Crypto.com’s inclusion of SHIB highlights a critical nuance: Proof of Reserves shows what is held—but not necessarily what is risky.

Holding customer deposits in full doesn’t eliminate exposure to volatility. If SHIB were to drop 50% overnight, the exchange wouldn’t be insolvent—but user portfolios would suffer massive paper losses, potentially triggering withdrawals and reputational damage.

Moreover, while Bitcoin and Ethereum serve as relatively stable anchors in reserve portfolios, SHIB’s price is heavily influenced by social media trends, celebrity endorsements, and speculative trading—making it far less predictable.

👉 See how leading platforms verify assets without compromising security.

Market Reactions and Industry Fallout

The revelation didn’t go unnoticed. Australian exchange CoinJar responded by delisting CRO, Crypto.com’s native token, citing recent market instability and failure to meet updated listing criteria.

“In light of recent events, we have decided that [Crypto.com] Coin (CRO) no longer meets our listing requirements. Unfortunately, we have to take this action on short notice due to ongoing market volatility.”

Such moves signal growing caution among international regulators and platforms regarding interconnected risks within the crypto space.

Meanwhile, trading volumes for SHIB remained robust, with Binance and Coinbase reporting around $32 million and $25 million respectively at the time—indicating sustained retail interest despite institutional skepticism.

FAQs: Addressing Common Concerns

Why does Crypto.com have so much SHIB in reserves?

Crypto.com doesn’t actively invest in SHIB. The large percentage reflects user-held balances. Since the exchange maintains a 1:1 custody model, any SHIB deposited by users appears in their Proof of Reserves.

Does holding SHIB increase Crypto.com’s financial risk?

Not directly. The exchange isn’t using SHIB as collateral or leveraging it for loans. However, high exposure to a volatile asset can impact market perception and user confidence, especially during downturns.

Is Proof of Reserves enough to ensure exchange safety?

While PoR is a step forward in transparency, it’s not foolproof. It verifies asset existence but doesn’t confirm solvency, audit liabilities, or assess asset quality. A comprehensive audit should include both reserves and obligations.

Could other exchanges face similar scrutiny over memecoin holdings?

Yes. Any exchange with significant user deposits in Dogecoin, Pepe, or other memecoins could show high concentrations in their PoR reports. The key is whether those holdings reflect real demand or speculative bubbles.

What happened to CRO after CoinJar’s delisting?

While CoinJar’s delisting was symbolic, it contributed to downward pressure on CRO’s price at the time. However, long-term performance depends on platform usage, staking rewards, and broader market conditions.

Is SHIB still relevant in 2025?

Absolutely. Beyond being a memecoin, SHIB has evolved with its own ecosystem—including ShibaSwap, BONE, and LEASH tokens—and continues to attract developers and NFT projects. Its cultural staying power keeps it relevant.

The Bigger Picture: Memecoins as Cultural Assets

SHIB’s presence in major exchange reserves illustrates a fundamental shift: digital assets are no longer judged solely by utility or technology. Community strength, brand recognition, and viral momentum now play decisive roles.

Web3 is increasingly blending finance with culture—and memecoins sit squarely at that intersection. While traditional investors may scoff, retail participation tells a different story: millions see value in tokens that represent shared identity and internet heritage.

As institutional adoption grows, platforms will need to balance transparency with education—helping users understand the risks behind popular assets without stifling innovation.

👉 Explore how next-gen exchanges are balancing innovation with security in 2025.

Final Thoughts

Crypto.com’s 20% allocation to SHIB isn’t a red flag—it’s a mirror reflecting where the market truly stands. Users want memecoins. They buy them, hold them, and trade them aggressively. Exchanges merely respond to demand.

But with great visibility comes greater responsibility. As the line between joke tokens and financial instruments blurs, regulators, auditors, and platforms must work together to ensure transparency goes beyond simple reserve snapshots.

In 2025, trust won’t just come from proving you hold assets—it will come from explaining what those assets mean.