Crypto.com faces severe criticism after reversing its previously announced 70 billion CRO token burn. This decision has raised concerns about vote manipulation and undermined trust within the community.
Decision to Return Tokens
On March 3, Crypto.com announced the approval of a proposal to create a Cronos Strategic Reserve, which involves re-issuing the burned tokens into an escrow wallet, increasing the total supply to 100 billion CRO. This move effectively reverses the largest token burn conducted in 2021.
Community Reaction
The community's reaction was largely negative. Many users voiced that the re-issuance goes against the community's wishes and undermines decentralization efforts. Questions also arose about why Crypto.com did not use its profits to buy back tokens from the market.
Accusations of Vote Manipulation
Accusations of vote manipulation emerged due to suggestions that Crypto.com controls up to 70%–80% of total voting power, making the vote outcome almost a foregone conclusion. In response to the backlash, the company announced an AMA session on March 25.
The reversal of the previously burned CRO tokens and the ensuing criticism highlight the challenges crypto projects face concerning governance and community trust. Crypto.com must now build bridges with its disgruntled users and restore confidence.
