Crypto.com Faces Backlash for Reissuing 70 Billion CRO Tokens

Crypto.com is under intense scrutiny after allegations emerged regarding deceptive financial tactics, coinciding with a significant increase in the price of its CRO tokens. CRO surged 35% following the announcement of a partnership between Trump Media and Crypto.com to explore ETFs linked to Cronos, Bitcoin (BTC), and other assets. However, this deal remains non-binding and is contingent upon SEC approval, leaving its future uncertain.

ZachXBT versus Crypto.com

Blockchain investigator ZachXBT has accused Crypto.com of reissuing 70 billion CRO tokens, violating its previous commitment to permanently burn them in 2021. His claims surfaced on X soon after Crypto.com revealed the partnership with Truth Social, owned by Trump Media & Technology Group (TMTG). ZachXBT remarked,

> “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’s wishes as you control the majority of the supply.”

This accusation has sparked backlash, with many investors feeling misled, particularly since Crypto.com had assured users that these tokens were permanently burned to enhance value and trust. However, blockchain records indicate their re-minting, raising concerns of market manipulation.

Community Reacts

Critics have suggested that Truth Social might have fared better by partnering with established exchanges like Coinbase, Gemini, or Kraken instead of Crypto.com amidst these controversies. Crypto commentator Gem Insider quipped,

> “CRO’s out here doing a full 180 like it’s auditioning for The Real Scams of Crypto.”

There are also claims that Crypto.com CEO Kris Marszalek leveraged his influence to finalize the Truth Social deal. User Solionxbt remarked on X,

> “Kris must be lobbying hard.”

Despite the ongoing controversy, Crypto.com has yet to release a detailed response to the accusations, leaving its reputation at risk. Meanwhile, the market sentiment remains mixed, as CRO has seen over a 25% surge in the last 24 hours, trading at $0.103 according to CoinMarketCap.