2 weeks ago
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Key Notes
- Crypto.com faces backlash for re-issuing 70 billion CRO tokens, reversing its 2021 token burn.
- Independent validators opposed the proposal, but Crypto.com-linked validators allegedly controlled 72% of the voting power.
- CRO is trading at around $0.079, down 8% this week amid the controversy .
Leading crypto exchange Crypto.com is facing major criticism after allegedly manipulating a vote to approve the re-issuance of 70 billion Cronos (CRO) tokens. The decision reverses a token burn announced in 2021, which was once touted as the largest in history.
On March 19, Crypto.com’s CEO, Kris Marszalek, revealed that the exchange generated $1.5 billion in revenue in 2024, with a gross profit of $1 billion and a net profit of $300 million. However, his statements failed to directly address the CRO re-issuance.
https://t.co/pFc4Pz9nFR generated $1.5b in revenue in 2024 and we currently have over 140m users on the platform. The business is run in a very efficient way, after salaries and other opex, we have about $1b in gross profit to reinvest in the growth of the platform. Of that, user…
— Kris | Crypto.com (@kris) March 19, 2025Many in the community argued that the exchange could have used its profits to buy back tokens from the market, rather than minting billions of new CRO, which dilutes the token’s value.
Notably, in 2021, Crypto.com had announced the burn of 70 billion CRO tokens as part of its plan to decentralize the network. At the time, the exchange described it as the largest burn event in history, aimed at reducing supply and enhancing the token’s scarcity.
The reversal of this move now undermines the original commitment to decentralization and token value preservation.
Notably, independent validators largely opposed the token re-issuance proposal, but three validators allegedly linked to Crypto.com–Electron, Antares, and Minotaur IV–collectively controlled 72% of the voting power, effectively tipping the outcome in favor.
I Hope that people vote against this, this is a terrible idea
— Cryptowizard ₿ ⚡ (@cryptowizardBTC) March 3, 2025As a result, many community members claimed that the exchange holds disproportionate influence over the network’s decision-making process. Popular YouTuber Jesus Martinez called it “the most disgusting CRO move of all time.”
In response to the growing criticism, Crypto.com has announced an upcoming ask-me-anything (AMA) event on March 25, where the token burn controversy is expected to be a key topic of discussion.
CRO Struggles
At the time of writing, CRO is trading at around $0.079, down 8% since the start of the week. The token has lost 92% of its value from its peak of $0.9698, achieved in November 2021.
On the daily price chart, CRO price is consolidating near the middle Bollinger Band (SMA), indicating low volatility. The upper band, around $0.0886, serves as immediate resistance, while the lower band at $0.0725 acts as support.
If CRO moves towards the lower band, traders could see a further drop towards the $0.06 zone. On the other hand, a breakout above the $0.0886 resistance could trigger a move toward the next resistance zone around $0.10.
Meanwhile, the Relative Strength Index (RSI) sits around 46, suggesting neutral momentum. This indicates that the market lacks a clear directional bias amid the ongoing controversy.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
A crypto journalist with over 5 years of experience in the industry, Parth has worked with major media outlets in the crypto and finance world, gathering experience and expertise in the space after surviving bear and bull markets over the years. Parth is also an author of 4 self-published books.
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