Crypto.com Faces Backlash Over 70-Billion-CRO Token Re-issuance

Crypto.com, a prominent cryptocurrency exchange, is facing intense scrutiny following allegations of unethical financial maneuvering. Blockchain investigator ZachXBT accused the exchange of reissuing 70 billion cronos (CRO) tokens, despite previously claiming that these tokens had been permanently burned in 2021. This revelation has sparked outrage within the crypto community, with many investors feeling betrayed by the exchange's actions.

ZachXBT, known for exposing scams within the blockchain industry, took to X (formerly Twitter) to call out Crypto.com’s token re-issuance. The comments came as Crypto.com secured a major partnership with Truth Social, the social media platform owned by trump media & Technology Group (TMTG). This move has raised eyebrows and fueled further controversy. ZachXBT expressed that the re-issuance of 70 billion CRO tokens went against the community’s wishes and that the exchange controls the majority of the supply. He suggested that Truth Media would be better positioned to partner with other exchanges such as Coinbase, Gemini, or Kraken, rather than Crypto.com.

The promise of burning these tokens was positioned as a deflationary measure, aimed at increasing the asset’s value and improving investor confidence. Many in the community believed the 70 billion CRO tokens were gone permanently, and the revelation of their re-issuance has caused investors to lose faith in the exchange’s credibility. The move is viewed as a blatant manipulation of tokenomics, with many accusing Crypto.com of misleading its users for financial gain.

A report pointed out that the promise of token burns being “forever” is often misleading. Developers still hold the keys to the smart contracts, potentially allowing them to reverse past burns. In this case, Crypto.com’s actions have confirmed those fears. Crypto commentator Gem Insider remarked, “CRO’s out here doing a full 180 like it’s auditioning for The Real Scams of Crypto.”

Further fueling skepticism, allegations suggest that Crypto.com CEO Kris Marszalek may have used substantial influence to secure the deal with Truth Social. User Solionxbt commented on X, “Kris must be lobbying hard.” The surge in TMTG’s stock after announcing the prospective Cronos ETF (exchange-traded fund) partnership, despite the company reporting a staggering loss, has led some to question the ethics of the partnership. User SatoadshiLite quipped, “I remember the good old days when Presidents didn’t grift while in power.”

While Crypto.com has yet to issue a detailed response to the allegations, the damage to its reputation may be long-lasting. The partnership with TMTG was expected to boost legitimacy, but now the firm seems overshadowed by allegations of deception and financial manipulation. The community's trust in Crypto.com has been severely eroded, and the exchange faces an uphill battle to regain its credibility.

In summary, the allegations against Crypto.com highlight the importance of transparency and ethical practices in the cryptocurrency industry. The re-issuance of CRO tokens and the subsequent partnership with TMTG have raised serious concerns about the exchange's integrity. As the crypto community continues to demand accountability, it remains to be seen how Crypto.com will address these issues and rebuild trust with its users.