Crypto.com Under Fire After Reverting "Largest Token Burn in History"

Crypto.com has come under fire after it reversed a major token burn on the Cronos blockchain, which was initially announced in 2021 as the “largest token burn in history.”

Crypto.com has faced backlash after reversing a significant token burn on the Cronos blockchain, initially announced in 2021 as the “largest token burn in history.” The company planned to burn 70 billion CRO tokens to further decentralize the network but has now proposed to reissue these tokens, returning the total supply to 100 billion. This move has sparked widespread criticism and accusations of vote manipulation within the crypto community.

Initially announced in 2021, Crypto.com's plan to burn 70 billion CRO tokens, then valued at $7 billion, was met with enthusiasm. The company also planned to contribute 500 million TIME tokens to the upcoming metaverse project. However, despite announcing the token burn in December 2021, the company never completed it. Instead, it proposed to reissue the tokens in March 2022, and despite strong opposition, the proposal ultimately passed with 55% of the vote.

Many community members had expressed concerns about the level of centralization at Crypto.com, given its large portion of voting power, which could skew the governance process. Some had also voiced suspicions of vote manipulation by the company to favor proposals that align with its interests. Moreover, the re-issuance of tokens has raised questions about Crypto.com's commitment to decentralization, a crucial aspect that many blockchain projects highlight.

With a snapshot of March 30, 2022, used for the voting process, and the issuance of new tokens scheduled for April 12, 100 billion CRO tokens are now in circulation. Prior to the burn, around 170 billion CRO tokens were planned for issuance.

Following the news of the token burn reversal, CRO’s price has dropped 8% this week, now trading at around $0.079, a significant decrease from its peak value of $0.9698 in November 2021. The token's value has been steadily decreasing since reaching its all-time high.

After announcing its plans to cut 20% of its workforce last week, rumors suggest that Crypto.com may carry out another round of layoffs in the coming weeks. The company, known for its cryptocurrency exchange platform, has been actively involved in various partnerships and sponsorships to expand its presence in the crypto space.