{"id":18925,"date":"2025-03-25T09:16:37","date_gmt":"2025-03-25T09:16:37","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=18925"},"modified":"2025-03-25T09:16:37","modified_gmt":"2025-03-25T09:16:37","slug":"onchain-sleuth-zachxbt-accuses-crypto-com-of-cro-supply-manipulation","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=18925","title":{"rendered":"Onchain sleuth ZachXBT accuses Crypto.com of CRO supply manipulation"},"content":{"rendered":"
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\"Onchain<\/p>\n

Crypto.com is facing criticism from the crypto community after reissuing 70 billion Cronos tokens burned in 2021. Critics said the move undermines the principles of decentralization and transparency in the cryptocurrency space.<\/p>\n

The controversy erupted on March 25 after onchain investigator ZachXBT posted<\/a> on X, accusing Crypto.com of reissuing Cronos (CRO<\/a>) tokens that had been declared permanently removed from circulation. \u201cCRO is no different from a scam,\u201d ZachXBT said, claiming the reissued amount represented 70% of the total supply and contradicted the community\u2019s expectations.<\/p>\n

\u201cYour team just reissued 70B CRO a week ago that was previously burned \u2018forever\u2019 in 2021 (70% total supply) and went against the community wishes as you control majority of the supply,\u201d he added.<\/p>\n

The reissuance followed news that Trump Media had signed<\/a> a non-binding agreement with Crypto.com to launch US crypto exchange-traded funds (ETFs) through Crypto.com\u2019s broker-dealer, Foris Capital US.<\/p>\n

\"Onchain
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Source: <\/em>ZachXBT<\/em><\/a><\/p>\n<\/figcaption><\/figure>\n

\u201cUnsure why Truth would choose a partnership with your exchange over Coinbase, Kraken, Gemini, etc, after this move by your team,\u201d ZachXBT added.<\/p>\n

Suddenly increasing a token\u2019s circulating supply may dilute the value of existing tokens, leading to a price decrease due to supply and demand mechanics.<\/p>\n

Crypto.com CEO responds to backlash<\/h2>\n

In response, Crypto.com CEO Kris Marszalek said the move was necessary to support investment growth under the new political climate in the US. \u201cCronos and Crypto.com have been running separately for years,\u201d Marszalek said during a March 25 AMA on X, adding:<\/p>\n

\u201cThe original token burn from Q1 2021 was a defensive move. At that point in time, it made a lot of sense. Now we have strong support from the new administration, the war on crypto is over [\u2026] There\u2019s a need for an aggressive investment to win.\u201d\u00a0<\/p><\/blockquote>\n

\"Onchain
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Source: <\/em>Crypto.com<\/em><\/a><\/p>\n<\/figcaption><\/figure>\n

\u201cThis is what the community wants, it\u2019s like thinking cents when we should be thinking dollars,\u201d he added.<\/p>\n

Related: <\/strong><\/em>Bitcoin \u2018more likely\u2019 to hit $110K before $76.5K \u2014 Arthur Hayes<\/strong><\/em><\/a><\/p>\n

Concerns about governance and decentralization<\/h2>\n

Critics have also raised concerns that the voting process allowing the reissuance may have been manipulated<\/a>.<\/p>\n

On March 19, Cointelegraph reported that GitHub users claimed<\/a> the exchange\u2019s validators control up to 70% of the voting power on the blockchain, giving them the ability to overturn community votes.<\/p>\n

According to Laura Shin\u2019s Unchained sources, Crypto.com allegedly controls<\/a> 70%\u201380% of the total voting power, essentially removing the need for any governance vote.<\/p>\n

Marszalek took to X on March 19 to highlight<\/a> the firm\u2019s financial and regulatory stability amid the ongoing controversy over the 70 billion Cronos token re-issuance.<\/p>\n

\"Onchain
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Source: <\/em>Kris Marszalek<\/em><\/a><\/p>\n<\/figcaption><\/figure>\n

Related: <\/strong><\/em>Michael Saylor\u2019s Strategy surpasses 500,000 Bitcoin with latest purchase<\/strong><\/em><\/a><\/p>\n

Crypto.com originally disclosed<\/a> the 70-billion-CRO token burn in a now-deleted February 2021 blog post, referring to it as the \u201clargest token burn in history\u201d with a goal to \u201cfully decentralize the network\u201d at the CRO mainnet launch.<\/p>\n

\"Onchain
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A screenshot from a now-deleted Crypto.com blog post on the 70-billion-CRO token burn. Source: Archive.today<\/em><\/p>\n<\/figcaption><\/figure>\n

\u201cAligned with our belief, and with the CRO chain mainnet launch just around the corner, we are fully decentralizing the chain network,\u201d the blog post stated, announcing an immediate burn of 59.6 billion tokens.<\/p>\n

Magazine: <\/strong><\/em>Bitcoin\u2019s odds of June highs, SOL\u2019s $485M outflows, and more: Hodler\u2019s Digest, March 2 \u2013 8<\/strong><\/em><\/a><\/p>\n