Crypto.com faces mounting criticism following allegations that the exchange reissued 70 billion Cronos (CRO) tokens previously promised to be permanently destroyed. The accusations come amid the company's controversial new partnership with Trump Media & Technology Group (TMTG).
Blockchain investigator ZachXBT publicly challenged the exchange's token practices on X (formerly Twitter), claiming Crypto.com reversed a 2021 promise that had purportedly removed 70% of the total CRO supply permanently. "CRO is no different from a scam. Your team just reissued 70B CRO a week ago that was previously burned 'forever' in 2021 (70% total supply) and went against the community's wishes as you control the majority of the supply," ZachXBT wrote.
The investigator suggested TMTG would have been better served partnering with alternative exchanges like Coinbase, Gemini, or Jesse Powell's Kraken rather than aligning with Crypto.com. This criticism specifically targeted the timing of the token reissuance, which occurred shortly before the announcement of Crypto.com's partnership with Truth Social, the platform owned by TMTG.
The allegations have ignited outrage throughout cryptocurrency communities. Many investors had operated under the assumption that the 70 billion tokens were irreversibly removed from circulation as part of a deflationary strategy designed to increase CRO's value and boost investor confidence.
Blockchain records appear to support ZachXBT's claims, showing that tokens previously marked as burned have indeed been reinstated to circulation. This action contradicts Crypto.com's earlier public commitments, leading many to question the exchange's trustworthiness and business practices. The controversy highlights ongoing concerns about transparency in cryptocurrency markets.
A report from Unchained Crypto emphasized that promises of "forever" token burns often mislead investors, as developers typically retain control of underlying smart contracts. This control potentially allows them to reverse previous burns despite public assurances to the contrary. Crypto.com's apparent reversal seems to validate these concerns.
"CRO's out here doing a full 180 like it's auditioning for The Real Scams of Crypto," remarked crypto commentator Gem Insider in response to the revelations. Other users suggested Crypto.com CEO Kris Marszalek may have leveraged significant influence to secure the Truth Social partnership, with user Solionxbt noting, "Kris must be lobbying hard."
Skepticism deepened after TMTG's stock climbed 9% following the announcement of a potential Cronos ETF partnership, despite the company reporting substantial losses. TMTG disclosed a $400 million loss for 2024, raising questions about the timing and motivation behind the partnership. X user SatoadshiLite expressed political concerns, writing, "I remember the good old days when Presidents didn't grift while in power."
Crypto.com has not issued a comprehensive response to the allegations as of this writing. The controversy threatens to undermine the exchange's reputation at a time when regulatory scrutiny of cryptocurrency markets continues to intensify. What was presumably intended as a prestigious partnership with TMTG has instead drawn unwelcome attention to accusations of market manipulation and broken promises.
Despite the controversy surrounding Crypto.com's token practices, the price of Cronos (CRO) has surged more than 30% in the 24-hour period following these developments. At time of publication, CRO was trading at $0.11.