- Crypto.com reissued 70 billion CRO tokens, previously burned in 2021.
- Community criticism as reissuance violates previous consensus.
- CEO Marszalek defends action amid significant market reactions.
Crypto.com has faced backlash following its reissuance of 70 billion CRO tokens, which were initially destroyed in 2021. This move has brought intense criticism from the cryptocurrency community, particularly from on-chain investigator ZachXBT.
The reissuance’s broader implications concern market trust and tokenomics models, leading to immediate market reactions such as a notable trading volume increase.
Crypto.com CRO Token Reissuance Sparks Outrage
ZachXBT, a known on-chain investigator, publicly questioned Crypto.com on the rationale behind the reissuance of 70 billion CRO tokens, initially destroyed in 2021. This reissuance represents a major part of the total supply, sparking concerns over transparency and community governance.
Community members label the reissuance as a breach of trust, viewing it as a contradiction to promises made during the 2021 token burn. The move has been described as detrimental to Crypto.com’s credibility, as the tokens were meant to be removed from circulation permanently.
Market reactions have varied, with Crypto.com’s CEO Kris Marszalek defending the reissuance decision.
Despite criticism, the CRO token price surged 30% in a week, indicating strong market interest.
Impact on Tokenomics and Investor Trust
Did you know? In 2021, the original burning of 70 billion CRO tokens by Crypto.com was hailed as a community-centered measure, drastically reducing the token supply and increasing investor confidence.
Cronos (CRO) currently trades at $0.10, with a market cap of approximately $2.78 billion as per CoinMarketCap. The 24-hour trading volume has risen significantly, experiencing an 828.58% change. The 7-day and 24-hour price percentage changes indicate an upward trend despite the ongoing controversy.
The Coincu research team suggests that such actions can affect investor trust and regulatory scrutiny. Historical trends in the industry show that similar cases have led to increased demands for transparency and stricter tokenomics models, ensuring more resilient token values.
CRO is no different from a scam. Your team just reissued 70B CRO a week ago that was previously burned ‘forever’ in 2021 (70% total supply) and went against the community wishes as you control majority of the supply. — ZachXBT, On-chain Investigator
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