The decision by Crypto.com to reissue 70 billion Cronos tokens has provoked a storm of debate within the cryptocurrency world. The action, strongly denounced by on-chain investigator ZachXBT, prompts significant inquiries regarding the exchange’s honesty and its collaboration with Truth Media, particularly as the CRO token sees a 30% cost increase.
ZachXBT did not hold back in his latest X post, criticizing Crypto.com for reviving 70 billion CRO tokens that were allegedly destroyed in 2021. This efficiently reverses the destruction and restores the total CRO supply to its initial 100 billion. The decision was pushed through through a governance vote, despite a definite majority (77.97%) voting against it. A simple 11.86% voted in favor, however their unbalanced voting power (managing 70-80% of the total) permitted the proposal to pass.
These revived tokens are now located in the Cronos Strategic Reserve, planned to improve CRO adoption. Crypto.com is attempting to reduce the effect by enforcing a new 5-year lockup duration, contributing to the 5 years that have already passed since CRO’s initial launch on Ethereum. This brings the total lockup time to a decade. The tokens will be released gradually through a native Cosmos SDK vesting account mechanism on the Cronos POS chain.
Regardless of the lockup and vesting schedule, the community is angry. The main problem? These tokens were expected to be gone permanently, completely eliminated from circulation.
ZachXBT did not think twice, mentioning that “CRO is not much different than a fraud.” He likewise questioned Truth Media’s choice to partner with Crypto.com over more reliable exchanges like Coinbase, Kraken, or Gemini. Toncoin (TON) Value Forecast for March 26th
> “My first reaction: substantial weakening. Self-centered habits from the business, as no one in the community gains from this,” an anonymous CRO whale informed Unchained.
> “A burn is a burn, burned tokens should not be revived.”
Wyll Bilderberg, a Crypto.com representative, was very straightforward, declaring that he almost always agrees with Cronos, but this time he is strongly against it!
Echoing this feeling, Cronos developer LEGION stressed the necessity of a simplified tokenomics model that focuses on token burning to increase value, rather than a large supply disguised as ‘strategy.’
Despite significant community opposition, CRO has risen 30% in the last week after the token re-minting. In the last 24 hours alone, CRO rose 28%, with trading volume increasing 1,357% to over $295 million. This increase appears to be driven by Crypto.com’s collaboration with Truth Media Group, suggesting a possible Cronos ETF.
Announced on March 24, the collaboration caused an immediate CRO rally, breaking through the $0.07 to $0.08 consolidation range and rising to $0.12 on March 25. However, it has since fallen back to $0.10 at the time of publication.
Despite community objections, the sharp rise in CRO’s price suggests that speculative interest is currently driving the market. While short-term traders may take advantage of this increase, the long-term effects of re-minting 70 billion CRO remain unclear.
As sentiment varies between optimism and doubt, CRO’s future path likely depends on whether Crypto.com can truly use its expanded treasury to promote real adoption, or whether the re-minting decision will simply reduce the supply and ultimately put downward pressure on CRO’s price.”
