ZachXBT Accuses Crypto.com of Manipulating CRO Token Supply

Crypto.com faces backlash from the crypto community after blockchain investigator ZachXBT accused the exchange of reissuing 70 billion Cronos (CRO) tokens previously burned in 2021. The move has sparked concerns over transparency, decentralization, and governance within the cryptocurrency space.

Allegations of Token Supply Manipulation

On March 25, ZachXBT posted on social media platform X, alleging that Crypto.com had reintroduced 70 billion CRO tokens, representing 70% of the total supply. These tokens were initially declared permanently removed from circulation in a widely publicized token burn in 2021.

ZachXBT stated, “CRO is no different from a scam,” criticizing the exchange for acting against community expectations and undermining trust.

Crypto.com CEO Responds to Criticism

Crypto.com CEO Kris Marszalek defended the decision during an AMA session on X, explaining that the reissuance was necessary to support aggressive investment growth under the new favorable political climate in the United States.

“The original token burn from Q1 2021 was a defensive move. At that point in time, it made a lot of sense. Now we have strong support from the new administration, the war on crypto is over […] There’s a need for an aggressive investment to win,” Marszalek said.

Concerns Over Governance and Decentralization

Critics have raised additional concerns regarding Crypto.com’s governance practices. Reports suggest that the exchange’s validators control between 70% and 80% of the blockchain’s voting power, potentially allowing them to override community decisions.

Laura Shin’s Unchained podcast cited sources claiming Crypto.com effectively controls governance, making community votes largely symbolic.

Community Reaction and Potential Impact

The crypto community expressed disappointment, highlighting that sudden increases in token supply can dilute existing token value and negatively impact investor confidence.

ZachXBT also questioned Crypto.com’s recent partnership with Trump Media to launch crypto ETFs, suggesting other exchanges like Coinbase, Kraken, or Gemini might have been more suitable partners given the controversy.

Deleted Blog Post Raises Further Questions

Crypto.com previously described the 2021 token burn as the “largest token burn in history,” aimed at decentralizing the network. However, the original blog post announcing the burn has since been deleted, raising further transparency concerns.

Quick Summary

• ZachXBT accused Crypto.com of reissuing 70 billion previously burned CRO tokens.
• Crypto.com CEO defended the move as necessary for aggressive investment.
• Critics raised concerns about governance, decentralization, and transparency.
• Community backlash highlights potential negative impacts on token value and trust.

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