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Crypto.com Hit with Backlash Over Controversial Token Burn Reversal, Community Demands Answers
- Crypto.com faces intense community backlash after a vote reversed its planned 70B CRO token burn, undermining original decentralisation goals.
- The move, aimed at establishing a Cronos Strategic Reserve, reissued tokens instead of burning them, eroding investor trust.
- CEO Kris Marszalek defended the decision by touting financial and regulatory stability, but critics condemned it as a greedy, opaque tactic.
One of the world’s largest crypto exchanges, Crypto.com, has suffered intense community backlash following an allegedly manipulated vote that reversed a massive token burn on its Cronos blockchain.
Crypto.com Token Re-Issuance Sparks Backlash
It all starts with the re-issuance of 70 billion CRO tokens, a decision that effectively cancels the 2021 token burn, which was once touted as “the largest token burn in history.”
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The reversal was proposed through a vote on establishing a Cronos Strategic Reserve that would return the total supply of CRO to 100 billion tokens. Critics argue that this move undermines the community’s trust and the original intent to decentralise the network at its mainnet launch.
Kris Marszalek, CEO of Crypto.com, took to X on March 19 to highlight the firm’s financial and regulatory stability amid the ongoing dispute. As expected, the post was filled with angry users questioning the company’s recent moves.
One commentator criticised the move by saying:
So you made $1 billion profit but needed to mine 70 billion CRO instead of using those funds to buy some off the market and help your core community remain positive.
X commentator
Another user on x classified the company’s moves as “greed and control” tactics:
Imagine holding CRO for years, believing in the project, trusting the team, and then BOOM, Crypto.com decides to print 70 BILLION extra tokens like it’s Monopoly money. No warning, no transparency, just a giant middle finger to every loyal investor who stuck around through the bear market.
X commentator
As criticism ramped up, Crypto.com announced an ask-me-anything (AMA) event scheduled for March 25, with the CRO token burn reversal set to be the primary topic.
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Author
José Oramas
José is a journalist and translator with a keen interest in blockchain and cryptocurrencies.
