Earlier this month, Cronos (CRO), the layer 1 blockchain of cryptocurrency exchange Crypto.com, announced plans to reissue 70 billion CRO tokens that were previously burned.
In this regard, Cronos put the proposal, which aims to return 70 billion CRO tokens, to the vote and it was accepted in the vote.
Following the vote, the CRO faced criticism from the cryptocurrency market, with US President Donald Trump’s company Trump Media and Technology Group announcing a strategic partnership with Crypto.com to launch a range of ETFs and ETPs under its FinTech brand Truth.Fi.
At this point, crypto detective ZachXBT accused Crypto.com of re-issuing 70 billion CRO tokens that were promised to be permanently burned in 2021, calling the move a serious breach of trust and fraud.
Warning investors that CROs are no different than scams, ZachXBT also questioned Trump’s company’s decision to choose Crypto.com over other US exchanges like Coinbase, Kraken, and Gemini.
The re-issuance of such a large amount of previously burned tokens has direct implications on the value and trust in the CRO, casting doubt on its transparency and reliability.
These had a negative impact on the market, leading to an immediate sell-off and increased volatility in CRO. However, Trump’s partnership with Crypto.com has changed this for now, causing a sudden increase in the CRO price.
Having increased by over 30% in the last 24 hours, CRO continues to be traded at $0.10 at the time of writing.
https://twitter.com/zachxbt/status/1904399783697031305
*This is not investment advice.
