Crypto.com has 20% of their reserves in SHIB since that’s what their users own 1:1. That’s the correct approach; you would prefer they gamble with their customer’s assets by swapping a portion to more blue chip crypto like ETH?
You are correct that the reserves SHOULD just reflect customer holding but what are the odds that customers of what is the 5th or 6th largest exchange in existence are in aggregate holding 20% of their crypto portfolio in SHIB?
that's exactly what I'd expect from the users of an exchange called crypto.com