- Crypto.com reissues 70 billion CRO tokens, raising community concerns over token supply control.
- ZachXBT criticizes the decision, questioning cooperation with Truth.
- CRO token price declines amidst controversy, sparking negative community sentiment.
Crypto.com recently reissued 70 billion CRO tokens, a move that has sparked significant controversy within the community. Announced in March 2025, the reissuance violates a prior commitment made in 2021 to permanently destroy these tokens.
The incident is crucial as it affects the trust and perceived governance of Crypto.com, especially in light of the sizeable proportion of token circulation now under their control. The token, which already saw an 8% decline in price, faces further scrutiny.
Crypto.com Faces Criticism Over Token Reissuance
Crypto.com’s decision to reissue 70 billion CRO tokens, once promised to be “permanently destroyed,” has drawn sharp criticism. ZachXBT, a noted on-chain investigator, labeled the move comparable to fraud. He notably criticized the continued association with Truth over alternative exchanges.
The reissuing of CRO tokens has immediately impacted the market, reducing the CRO token’s value by 8%. The decision reverses the effect of the 2021 token burn meant to decrease supply by 70 billion from 100 billion total tokens.
Community and Market React to CRO’s 8% Price Drop
Community sentiment is overwhelmingly negative. On Telegram, a CRO validator criticized: “How dare you re-mint 70B tokens?” Similarly, Andre Cronje, co-founder of Sonic, emphasized that no value was created with this increase in market cap.
CRO Validator, – “It is a spit in all CRO holders’ faces. I mean, how dare you to re-mint 70B tokens while proposing to burn 50M tokens on the same day?”
Historical Context, Price Data, and Expert Insights
Did you know? Crypto.com’s 2021 burn of 70 billion CRO was previously lauded as the largest in history, setting a precedent now reversed by the latest reissuance.
Cronos (CRO), trading at approximately $0.109, has experienced significant fluctuations with a 32.57% increase over the past week. Its market cap stands at $2.90 billion, according to CoinMarketCap data. Recent trading volume reached $255.11 million, reflecting a stark increase.
Experts argue that the long-term effect of token reissuance on market perception might be severe. Andre Cronje’s critique highlights potential trust issues. Regulatory scrutiny might follow if sentiment remains critical. Analysts foresee ongoing market volatility as the community continues to assess governance implications.
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