Recently, Crypto.com has come under scrutiny after reissuing 70 billion Cronos (CRO) tokens, drawing significant criticism from the crypto community.
Reasons for Discontent
On March 25, blockchain investigator ZachXBT accused Crypto.com of reissuing Cronos (CRO) tokens that had previously been declared permanently removed from circulation. ZachXBT noted that this move contradicts community expectations and transparency principles, adding that the reissued amount represents 70% of the total supply.
Response from Crypto.com Leadership
In response to the criticism, Crypto.com CEO Kris Marszalek explained the necessity of this move to support investment growth under the new political climate in the U.S. He emphasized that Cronos and Crypto.com have been functioning separately for years, and the previous token burn was a defensive action.
Concerns About Decentralization
Critics have also raised concerns that the voting process allowing the reissuance may have been manipulated. According to some users, Crypto.com's validators control up to 70% of the voting power on the blockchain, allowing them to overturn community decisions.
The ongoing controversy surrounding Crypto.com raises important questions about the paths towards decentralization and transparency in the crypto space. The company will continue to be under close scrutiny by the public and experts.
