Crypto.com, a heavyweight in the crypto exchange arena, is facing a storm of criticism. The uproar stems from a controversial vote that reversed a massive token burn on its Cronos blockchain, sparking outrage among crypto enthusiasts.
Kris Marszalek, the CEO of Crypto.com, took to social media platform X on March 19 to reassure the community about the company’s financial and regulatory robustness amidst the turmoil surrounding the re-issuance of 70 billion Cronos (CRO) tokens. This move essentially nullified the 2021 announcement of a 70 billion CRO token burn, which was touted as the “largest token burn in history” aimed at decentralizing the network.
The community’s reaction? Not so rosy. Many are questioning why Crypto.com, after making a significant profit, opted to re-mint 70 billion CRO instead of purchasing tokens from the market to support its core community. One vocal critic on X highlighted this sentiment, questioning the decision-making process.
Back in February 2021, Crypto.com had proudly declared the burn of 70 billion CRO tokens, aligning it with their vision of a decentralized network. This move was supposed to coincide with the launch of the CRO mainnet. The immediate burn included 59.6 billion tokens, while the rest were allocated to monthly burns and ecosystem development.
Fast forward four years, and a new proposal emerged on March 2, suggesting the creation of a Cronos Strategic Reserve by reversing the 2021 burn. The proposal aimed to re-issue an equivalent number of tokens on Cronos POS into a strategic reserve escrow wallet, restoring the total supply to 100 billion CRO.
The vote, launched on March 3, was met with significant backlash from the community. Many expressed their discontent on social media, urging others to vote against what they saw as a move contrary to the community’s desires.
Despite the negative feedback, the vote concluded in favor of establishing the Cronos Strategic Reserve. This outcome has fueled speculation about potential vote manipulation. Critics argue that Crypto.com’s control over a substantial portion of voting power undermines true governance.
In response to the controversy, Crypto.com announced an upcoming ask-me-anything event scheduled for March 25. This session is expected to address the burning issue of the CRO token re-issuance.
As the crypto world watches closely, questions linger about the future direction of Crypto.com and its commitment to decentralization. Will this be a turning point for the company, or will it further alienate its community? Only time will tell.
