Cronos Loses $6B as Trump-Linked Treasury Rally Fades
Cronos, the native token of Crypto.com’s Cronos Chain, surged 40% to $0.1911 after Trump Media & Technology Group (TMTG) announced a $6.4B CRO treasury strategy on Aug. 26. Since the peak, Cronos (CRO) has plunged over 50%, erasing more than $6B from its market cap and falling out of the top 30 assets to rank 33rd. Community members have criticized the lack of demand and utility, calling the chain a “ghost town.” Others attribute the drop to a broader market sell-off, with Bitcoin (BTC) dipping below $110K and the Crypto Fear & Greed Index falling under 30. Crypto.com CEO Kris Marszalek has remained silent on the CRO price collapse but recently tweeted support for a CFTC tokenized collateral initiative, which includes CRO. Meanwhile, the US SEC and FINRA are reviewing crypto treasury announcements amid concerns about selective disclosure. The CRO price slump raises doubts about the token’s long-term prospects without clear use cases.
Bearish
The sharp decline in Cronos’s price and market cap signals weakening investor confidence and limited token utility. The initial 40% rally from the Trump Media Group CRO treasury announcement lacked sustained demand, leading to profit-taking and a 50% retracement. Similar hype-driven pumps—such as corporate crypto treasuries by major firms—often face swift sell-offs when speculative interest wanes. Additionally, the broader market downturn, marked by Bitcoin falling below $110K and the Fear & Greed Index under 30, exacerbates selling pressure. Short-term, CRO may continue to struggle without new catalysts or use-case developments. Long-term recovery relies on increased network activity and real-world adoption. Until Cronos demonstrates clear utility beyond treasury strategies, bearish sentiment may prevail.