With the recent developments regarding FTX’s insolvency, and the ensuing fallout, it is a very uncertain time in the cryptocurrency market (we seem to be having a lot of that in 2022!). The Chromia team would like to reach out to the community and assure everyone that our fiscal situation remains largely unchanged and that we are continuing ‘business as usual’.
Both ChromaWay and Chromia practice responsible fiscal management. We held no assets on FTX and had zero exposure to FTT, SOL, etc. Our treasury is held in stable and liquid assets, a large part of which is held outside of the cryptocurrency market entirely. We do not engage in risky practices (i.e. taking loans against assets, leverage trading, etc.) that have threatened the existence of many other cryptocurrency projects, exchanges, and investment firms. In addition to this, ChromaWay has continued to generate revenue throughout 2022 via enterprise clients, revenue which contributes to further development in Postchain, Rell, and other important components of what will become the Chromia public blockchain platform.
In August 2020, we entered into an agreement with Alameda Research for liquidity provision services. This agreement ended in January 2021, and at that time we elected not to renew the agreement. Aside from the CHR token being listed on FTX, we have had no involvement with them since that time. Also of note, the most recent reports of Alameda’s holdings show no remaining exposure to CHR.
Of course, when an entity as big as FTX/Alameda fails, there are negative side effects that are largely beyond our control. The steep drop in CHR token price (along with the rest of the market) is one such side effect. There are also ~4m CHR tokens held by FTX - these tokens came from users who deposited CHR on the exchange to trade. While the fate of these tokens is unclear, we feel fortunate that it represents a small portion of our total supply. We hope that our community members are eventually able to recoup the assets that have become frozen.
This debacle is a perfect example of why the phrase ‘not your keys, not your coins’ has become a popular refrain in the crypto world. We encourage everyone in our community to learn proper operational security and custody their own crypto assets.
Chromia has excellent working relationships with several exchanges and other partners within the industry who will move past the current market difficulties. Projects we have close working relationships with, such as My Neighbor Alice, are also on solid financial footing and proceeding with development as planned. Moving forward, we will continue to promote our ecosystem grant programs as we work to attract development in the lead-up to mainnet. We will continue to work towards delivering our platform while maintaining the same standard of financial diligence that has served us well up to this point.
Back in May (around the time of the Luna crash), we published this letter from the founders. If you haven’t seen it, the core messages within it are equally relevant today. The bottom line is that we aren’t going anywhere.
We would like to thank the members of our community who have remained steadfast in their support. Through these trying times, we will become stronger and ultimately show the cryptocurrency world that Chromia is one of the survivors that will contribute to the bright future of this industry.
Modern society runs on data and every online service you’re using is built upon underlying databases - ranging from your online bank to music streaming and gaming. Chromia is a relational blockchain - a combination of a relational database and a blockchain - making it easy to develop user-friendly decentralized apps for almost any industry, including DeFi, NFTs, gaming, and more.
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