Crypto.com Faces Accusations of Fraud for Reissuing 70 Billion Burned CRO Tokens
Blockchain investigator ZachXBT has accused Crypto.com of reissuing 70 billion CRO tokens that were supposedly burned in 2021, sparking allegations of ’borderline fraud’. This reissuance contradicts Crypto.com’s prior commitments to reduce the supply by 70%, initially aimed at decentralizing the Cronos blockchain. The move coincides with a partnership between Crypto.com and Trump Media to launch U.S.-based ETFs, further intensifying scrutiny over Crypto.com’s motives. The recent developments have raised concerns regarding the integrity of immutable blockchain transactions and the centralization of voting power. Despite the token burn’s initial enhancement of CRO’s value, the token has significantly dropped, currently trading at $0.10. The governance vote to reissue was possibly influenced by Crypto.com’s substantial control over voting rights, highlighting the critical need for trust and transparency in the crypto sector.
Bearish
The reissuance of 70 billion CRO tokens, which contradicts previous deflationary actions, undermines trust and transparency in the market. This action raises concerns about potential devaluation due to increased supply, and the perceived centralization of voting power may deter investor confidence. These factors could exert downward pressure on CRO prices and lead to negative sentiment in the broader crypto market, signaling a bearish outlook both in the short and long term.