Crypto.com is facing fraud allegations after re-minting CRO tokens, following its partnership announcement with Trump Media.
Why Is This a Big Deal?
In 2021, Crypto.com burned 70% of CRO's total supply, reducing it from 100 billion to 30 billion. Laura Shin reported that Cronos Labs decided to re-mint 70 billion CRO tokens for a new strategic reserve. Many CRO token holders have raised concerns, stating that 'a burn is a burn; burnt tokens shouldn't be brought back to life.' The total circulation supply of Cronos now stands at 27,408,853,450. Its market cap is $2,900,268,360, and its FDV is $10,307,330,727. This development could make CRO inflationary, reducing its scarcity and potentially lowering its value. CRO has fallen over 91% since its all-time high in 2021. In the last year, the CRO market has experienced a drop of 31.2%, although it has grown by 33.6% in the last seven days, it dropped by 1.5% in the last 24 hours.
About Trump media’s Involvement
ZachXBT opines that Trump Media is unaware of Crypto.com's fraud. Nonetheless, CRO will be a main part of the proposed ETFs, even though traditional securities will also play an important role. This plan requires approval from regulatory agencies.
Why Crypto.com Has Made a Power Move?
The decision to re-mint the burned tokens was implemented through the community voting process. Crypto.com's significant voting power allowed the company to easily pass the decision. The company controls no fewer than 80% of voting power. Many believe that re-minting of CRO is a power move by Crypto.com to maintain control.
The allegations against Crypto.com have sparked significant reactions within the crypto community, especially after announcing its partnership with Trump Media. The developments will likely be closely monitored by investors and regulators.
