- Crypto.com reissued 70B CRO tokens, violating burn pledge.
- CRO tokens surge 30% amid controversy.
- Community and experts worry about centralization, governance.
Crypto.com controversially reissued 70 billion Cronos (CRO) tokens previously burned in 2021, raising concerns among investors and observers.
On-chain investigator ZachXBT called this move akin to fraud, as it contradicts past promises of permanent destruction, affecting community trust.
Crypto.com Faces Backlash for Reissuing 70B Burned Tokens
On-chain investigator ZachXBT exposed Crypto.com’s action on his platform, highlighting the reissuance of 70 billion CRO tokens. This amount constitutes 70% of the total supply and undermines the community’s consensus established in 2021. CEO Kris Marszalek defended the decision, citing strong support from new administration and the necessity for aggressive investment.
The reissuance of CRO tokens contradicts the 2021 announcement where Crypto.com claimed the burn aimed to decentralize the network. Despite significant criticism, the token saw a 30% price surge, demonstrating complex market dynamics in response to the announcement. In the immediate aftermath, the trading volume escalated 1,357% to over $295 million. Critics cite this inconsistency in action and the potential to affect governance and decentralization in the long term.
Market participants reacted on social media, and community sentiments reflected dissatisfaction. Crypto.com ambassador Wyll Bildeberg expressed disappointment, arguing the breach of core principles. LEGION, another industry figure, highlighted the importance of maintaining a lean tokenomics model. The incident sparked discussions around centralization issues and potential governance manipulation.
Surge in CRO Price Despite Trust and Governance Concerns
Did you know? In 2021, Crypto.com’s token burn was labeled the “largest in history” with the aim of decentralizing the network. Today, the community grapples with the implications of reissuing these tokens, highlighting ongoing concerns about centralization.
According to CoinMarketCap, Cronos (CRO) is currently priced at $0.10. With a market cap of formatNumber(2776630079, 2) and a 0.10% market dominance, the token shows notable activity. The trading volume reached formatNumber(406837675, 2), marking a 1777.89% increase. Recent analysis reveals a 26.33% 24-hour price increase and a 33.19% rise in the past week, while facing declines over the longer term.
The Coincu research team anticipates potential financial impacts from altered trading volumes but expects regulatory oversight to tighten amid this controversy. Experts also point out technological challenges that may arise from conflicting token circulation claims, stressing the need for transparency and innovation in the industry.
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