Crypto.com has once again sparked controversy after re-minting 70 billion CRO tokens that were burned in 2021. The move, which comes as the platform announced a new partnership with Trump Media, has sparked investor anxiety regarding governance and transparency. This Crypto.com 70B CRO re-mint controversy has been the top topic of conversation on crypto forums since the move was reported last week.
Crypto.com CRO Re-Mint Contradicts Earlier Burn Pledge
In February 2021, Crypto.com destroyed 70 billion CRO tokens to cap supply and increase investor confidence. The move decreased the total supply from 100 billion to 30 billion CRO, a gesture that was welcomed by the community back then.
However, blockchain evidence recently shows Crypto.com re-minted the whole 70 billion behind the scenes—without overt announcement. That’s against the former promise of an immortality burn. The re-mint was outraged because only blockchain sleuths found the action and not through an announcement by the platform.
ZachXBT, a researcher on-chain, posted the warning that highlighted its inconsistency from former promises. Even though Crypto.com announced the tokens are set aside for infrastructure development, most investors are unaware.
Governance Vote Highlights Centralization Concerns
The re-mint was put to a governance proposal. In spite of 78% opposition to the motion, it was still passed because of weighted voting power. Approximately 11.86% of the voters representing 70–80% of token power forced the proposal through.
This has attracted controversy to Cronos governance. Critics feel that it indicates excessive centralization, where the whales override the majority opinion. Investor frustration at the result translates to diluted control by the community and trust.
Trump Media ETF Deal Adds Fuel to the Fire
Concurrently, Crypto.com partnered with Trump Media & Technology Group. Together, they planned to introduce digital asset ETFs under a brand new label called Truth.Fi. The ETFs are targeted to focus on U.S.-centered innovation spaces such as finance and energy.
Crypto.com is to provide custody and crypto infrastructure to the venture. The news prompted CRO’s price to go up by 35% over a period of 48 hours, temporarily steadying market sentiment.
Yet, most agree that the timing is smart. Critics suggest that the positive news could have been utilized to offset the bad mojo of the re-minting news.
Market Reaction: Short-Term Gain, Long-Term Skepticism
Since the Trump Media ETF news, CRO appreciated from $0.12 to more than $0.16, a 40% rise in less than three days. The upsurge, though, could be short-lived.
Analysts caution that the expansion of CRO supply may stretch long-term value. The re-minting wipes out years of deflationary gains, injecting volatility into CRO’s future market cap.
