Crypto.com faces criticism from the crypto community after reissuing 70 billion Cronos tokens burned in 2020.

Crypto.com is facing criticism from the crypto community after reissuing 70 billion Cronos tokens burned in 2021.

Crypto.com faced criticism from the crypto community over its move to reissue 70 billion Cronos (CRO) tokens that were burned in 2021, according to reports by The Block and onchain investigator ZachXBT.

The controversy arose after X user and onchain investigator ZachXBT accused Crypto.com of reissuing Cronos (CRO) tokens, which were declared permanently removed from circulation.

“CRO is no different from a scam,” ZachXBT said, adding that the reissued amount represents 70% of the total supply and went against the community’s expectations.

“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.”

The reissuance followed news that Trump Media had signed a non-binding agreement with Crypto.com to launch US crypto exchange-traded funds (ETFs) through Crypto.com’s broker-dealer, Foris Capital US.

Unsure why Truth would choose a partnership with your exchange over Coinbase, Kraken, Gemini, etc, after this move by your team.

Suddenly increasing a token’s circulating supply may dilute the value of existing tokens, leading to a price decrease due to supply and demand mechanics.

Crypto.com CEO responds to backlash

In response, Crypto.com CEO Kris Marszalek said the move was necessary to support investment growth under the new political climate in the US.

“Cronos and Crypto.com have been running separately for years,” Marszalek said during a March 25 AMA on X, adding:

This is what the community wants, it’s like thinking cents when we should be thinking dollars.

Concerns about governance and decentralization

Critics have also raised concerns that the voting process allowing the reissuance may have been manipulated.

On March 19, GitHub users claimed that the exchange’s validators control up to 70% of the voting power on the blockchain, giving them the ability to overturn community votes.

According to Unchained sources, Crypto.com allegedly controls 70%–80% of the total voting power, essentially removing the need for any governance vote.

"The crypto community is furious with @cryptocom for reissuing 70 billion $CRO tokens that were previously burned 'forever' in 2021," said onchain investigator ZachXBT.

"This move undermines the principles of decentralization and transparency in the cryptocurrency space." pic.twitter.com/Y4rW69V9jB

— The Block (@TheBlock__) March 25, 2024

In March, Trump Media announced a partnership with Crypto.com to launch US crypto ETFs through the firm’s broker-dealer.

The partnership will see Trump Media and SoFlo Technologies launch two types of ETFs covering the most popular cryptocurrencies, Bitcoin and Ethereum, in the fourth quarter of 2024.

"We are pleased to partner with Foris Capital US to expand our strategic initiatives and introduce innovative products to the market," said SoFlo CEO Grant Leonard.

The move comes as the US Securities and Exchange Commission (SEC) chair, Gary Gensler, has expressed openness to the idea of crypto ETFs, and several companies are applying for approval.

"With the new administration in the US and the potential for a booming economy, we are seeing an interest in new types of investment products," said a Crypto.com spokesperson.

"We are committed to providing our users with the best possible products and services, and we will continue to innovate and expand our offerings in the years to come."output: After a brief stint in the House of Representatives in the early 1980s, Trump returned to the private sector, where he continued to build his brand and business empire. He also remained a fixture in the political sphere, openly mulling a presidential run in 1988 before ultimately deciding against it.

In the early 1990s, Trump began to focus his attention on real estate development again, pouring his own money into risky projects like the Trump Tower in New York City and the Trump International Hotel and Tower in Chicago. These projects were largely successful, and they helped to solidify Trump's status as a powerful and influential figure in the business world.

Trump's business acumen and his ability to generate buzz and attention made him a natural fit for the world of television. In 2003, he began hosting the reality show "The Apprentice," which followed a group of candidates as they competed for a high-level executive position at one of Trump's companies. The show was a hit, and it ran for 14 seasons.

Throughout his career, Trump has been a polarizing figure. His critics have accused him of being a narcissist, a bully, and a misogynist.