Community slams Crypto.com CEO over 70B CRO re-issuance

Crypto.com, a prominent player in the cryptocurrency exchange landscape, recently came under scrutiny following a contentious vote related to the reversal of a massive token burn on its Cronos blockchain. A proposed re-issuance of 70 billion Cronos (CRO) tokens, initially planned for destruction in 2021, has sparked significant backlash from the community.

On March 19, Crypto.com CEO Kris Marszalek sought to reassure users of the platform’s financial integrity amidst growing concerns about the reversal decision. Critics were quick to voice their disappointment, highlighting the irony that a substantial profit of $1 billion could have been redirected to bolster community trust, instead of reinstating the burned tokens. Comments on social media express dismay, calling into question the motivations behind the token re-issuance.

The original plan for the 70 billion CRO token burn was heralded as “the largest token burn in history,” intended to aid in the full decentralization of the network during the CRO mainnet launch in February 2021. The ambitious initiative began with an immediate burn of 59.6 billion tokens, further supplemented by monthly burns and allocations for block rewards and ecosystem development.

However, in a surprising turn of events, Crypto.com has proposed to reverse this significant token burn. An announcement from Cronos on March 2 outlined plans to create a Cronos Strategic Reserve, effectively reinstating the total supply of CRO back to its original cap of 100 billion tokens. This proposal, which began to be voted on starting March 3, faced a wave of criticism from community members who felt it contradicted the foundational principles of decentralization.

Despite a chorus of objections, the vote ultimately favored the creation of the Strategic Reserve. This decision has incited allegations of vote manipulation, as observers noted that a significant portion of the voting power is allegedly controlled by Crypto.com itself. Reports suggest that Crypto.com wields 70-80% of the overall voting power, leading to speculation about the integrity of the governance process.

Following the controversial vote results, Crypto.com announced an upcoming ask-me-anything session scheduled for March 25. The CRO token burn issue is expected to dominate discussions, as many in the community continue to express skepticism about the exchange’s commitment to decentralized governance. As the narrative unfolds, stakeholders are watching closely to see how Crypto.com will address the growing discontent and restore confidence among its user base.