You may have heard about some recent events in the crypto industry. In case you’re wondering how these events may affect eToro, or your assets at eToro, we wanted to be clear:
- eToro is a profitable business with a strong balance sheet. The liquidity concerns that have impacted some industry players have no direct impact on eToro.
- eToro’s sources of revenue are diversified and do not depend only on crypto.
- eToro does not have any corporate exposure to FTX or Alameda Research and does not offer the FTT token to US clients.
- eToro has never issued our own token.
- We don’t lend or offer leverage against customer assets or funds. In addition, every day customer assets and cash are segregated from eToro’s corporate assets and cash to avoid commingling of the two. Customer cash balances are held at multiple banks in custodial accounts and are reconciled on a daily basis to ensure safety and liquidity.
eToro has a strong and experienced history of risk management with a deep knowledge base that spans across regulatory compliance, legal, and trading sectors. Today we have over 30 million registered users from more than 100 countries. As a global, regulated, multi-asset firm, we are diversified and therefore not dependent on any one geography or asset class.
Since our launch in 2007, we have experienced many market cycles. This is not our first crypto winter. Recent events in the crypto market are another reminder of the importance of transparency and working with global regulators to ensure the future of the digital asset industry. We will continue to do our part to restore confidence in the crypto ecosystem, and we remain long-term supporters of this valuable asset class.
If you have any questions, please reach out to our customer service team. We’re standing by to help you with your investing needs.