Crypto.com is going through contemporary scrutiny from the cryptocurrency neighborhood following its controversial vote to mint 70b CRO tokens, price about $5b.
CRO is the native cryptocurrency of the Crypto.com ecosystem, used for transaction charges, staking and rewards on the platform. The transfer has fueled fears that the change may be secretly bancrupt, in response to a viral Reddit post by consumer u/GabeSter on r/CryptoCurrency.
The controversy erupted after Crypto.com proposed to remint tokens it had beforehand burned in 2021. On the time, the corporate had touted the token burn as a strategy to solidify CRO’s long-term worth by decreasing provide.
Nonetheless, on March 2, 2025, the change put forth a proposal to reintroduce the 70b CRO provide, sparking widespread backlash. Though the proposal was put to a vote, the exchange’s significant control over voting power ensured its passage, regardless of most unbiased validators rejecting it.
After the proposal’s passing, CRO’s worth plunged 5.2%, reaching $0.077.
Crypto.com didn’t reply to Cryptonews’ request for remark by press time.
Crypto.com’s Token Historical past Fuels Issues About Monetary Stability
In keeping with u/GabeSter, Crypto.com CEO Kris Marszalek has a historical past of controversial enterprise choices. Earlier than launching Crypto.com, Marszalek was the CEO of Ensogo, a now-defunct e-commerce platform that collapsed in 2016, allegedly leaving buyers and third-party distributors in monetary spoil.
The Reddit put up additionally highlights the early days of Crypto.com, previously often known as Monaco (MCO), which raised $26m in an ICO however later pivoted to buying the Crypto.com area. In 2020, Crypto.com allegedly pressured MCO holders to swap their tokens for CRO at an unfavorable charge, which some noticed as a bait-and-switch maneuver.
The most recent reminting proposal has deepened skepticism about Crypto.com’s monetary stability.
Whereas Marszalek claims the extra tokens can be used to create “sustainable flows on the demand facet,” critics argue that this can be a thinly veiled try to inject liquidity on the expense of current token holders.
The Reddit put up likens the scenario to a “cash printer” situation, the place Crypto.com can generate billions in new tokens with no price to itself whereas devaluing the holdings of current buyers.
Crypto.com’s Lack of Latest Audits Raises Transparency Issues
Additional intensifying issues, Crypto.com has not launched an audited monetary assertion since 2022. After the collapse of FTX, the change briefly shared a proof-of-reserves audit in December of that 12 months.
Nonetheless, the auditing agency, Mazars, later distanced itself from the report, citing issues that it didn't sufficiently account for liabilities. Crypto.com has since refused to offer up to date audits, elevating additional doubts about its monetary transparency.
Crypto Neighborhood Seeks Readability Amid Crypto.com’s Controversial Transfer
In response to the backlash, Marszalek has largely remained silent however has denied insolvency rumors. Nonetheless, Crypto.com’s determination to mint $5b price of CRO whereas failing to offer up to date audits has solely fueled additional hypothesis.
Many customers within the crypto neighborhood now view the remint as an act of desperation, evaluating it to ways seen in failing firms making an attempt to remain afloat.
There isn't a concrete proof that Crypto.com is bancrupt. Nonetheless, rising issues inside the crypto neighborhood spotlight the necessity for larger transparency.
Till the change supplies a transparent breakdown of the way it intends to make use of the newly minted tokens and releases up to date monetary audits, many buyers will doubtless stay skeptical of its long-term viability.
The put up Crypto.com’s Controversial $5B Token Mint Sparks Insolvency Fears Among Community appeared first on Cryptonews.
