Crypto.com is facing fraud accusations following suspicions of secretly reissuing burned CRO tokens.
Why Is This a Big Deal?
In 2021, Crypto.com burned 70% of the total supply of CRO tokens, reducing the amount from 100 billion to 30 billion. However, according to investigations, including by Laura Shin, Cronos Labs has decided to re-mint 70 billion CRO for a new strategic reserve. This has raised concerns among token holders as it may make CRO inflationary, decreasing their value.
About Trump media’s Involvement: Explained
According to ZachXBT, Trump Media may not be aware of the allegations against Crypto.com. Nonetheless, CRO is intended to be a major component of the proposed ETFs; however, regulatory approval is required for the plan to proceed.
Why Crypto.com Has Made a Power Move?
The decision to reissue the tokens was implemented through community voting, where Crypto.com holds dominance due to its control over the voting ecosystem. Many believe this was a power move by the company to maintain control over its assets.
The allegations against Crypto.com raise questions about transparency and governance in the crypto world. Such situations can affect investor trust.
