- Crypto.com’s 70B CRO reissue sparks debate on decentralization, with critics calling it a major shift in tokenomics.
- Community backlash grows as CRO supporters question the decision, warning it could erode trust in the Cronos ecosystem.
- Despite criticism, Crypto.com partners with TMTG to launch ETFs focused on digital assets and American innovation.
Crypto analyst ZachXBT recently criticized Crypto.com for reissuing 70 billion CRO tokens. These tokens were burned earlier in 2021. The move has sparked concerns about decentralization and transparency within the Cronos ecosystem. The community is questioning Crypto.com’s move and its implications in the long term.
Concerns Over Tokenomics and Centralization
Besides the sheer volume of the reissued tokens, many argue that this action disrupts CRO’s tokenomics. Consequently, reintroducing such a significant amount of tokens dilutes the supply. This decision has led to comparisons with actions typically taken by central banks, rather than decentralized crypto projects.
Wyll Bildeberg, a known CRO supporter, voiced his frustration. He stated that burned tokens should not be revived, emphasizing that Cronos’ credibility is at risk. Additionally, he pointed out that such a move signals a high degree of centralization, which could undermine trust in the project.
Crypto.com Partners with Truth Social
According to Fox Business Reporter Ellenor Terrett, Crypto.com announced a partnership with Trump Media & Technology Group (TMTG), the parent company of Truth Social. The collaboration aims to launch a series of ETFs and ETPs featuring digital assets like Bitcoin, CRO, and other securities with a Made in America focus.
Moreover, the ETFs will be managed through Crypto.com’s broker-dealer, Foris Capital US LLC. These investment products aim to support American companies, innovation, and economic growth. TMTG CEO Devin Nunes expressed excitement about the partnership, stating that it aligns with their vision of supporting firms focused on technological advancement.
Crypto.com CEO Kris Marszalek supported the deal. When these ETFs are approved, they will be accessible globally, he underlined. This encompasses important markets in Asia, Europe, and the U.S. The 140 million users of the Crypto.com App will also have access to these products.
