Crypto.com Faces Backlash Over 70 Billion CRO Token Re-Issuance
Crypto.com faces backlash for allegedly manipulating a vote to approve the re-issuance of 70 billion CRO tokens, reversing a previous token burn commitment from 2021. This decision has raised concerns about decentralization and token value preservation.
Key points include:
- Kris Marszalek, CEO of Crypto.com, announced $1.5 billion in revenue for 2024, with a net profit of $300 million, without addressing the CRO re-issuance directly.
- Community members argue profits could have been used for token buybacks instead of minting new CRO, which dilutes value.
- In 2021, Crypto.com had touted a 70 billion CRO burn as the largest in history to enhance scarcity.
- Independent validators opposed the re-issuance, but three validators linked to Crypto.com controlled 72% of the voting power.
- CRO is currently trading at approximately $0.079, down 8% this week and 92% from its peak of $0.9698 in November 2021.
- The price is consolidating near the middle Bollinger Band, indicating low volatility, with resistance at $0.0886 and support at $0.0725.
Crypto.com plans an ask-me-anything (AMA) event on March 25 to address the controversy surrounding the token burn.
