Crypto influencer and blockchain sleuth ZachXBT has accused Crypto.com of betraying its community after the exchange decided to reissue 70 billion Cronos (CRO) tokens that had previously been burned.
The decision, which effectively restores the original supply to 100 billion CRO, has led to widespread backlash among investors who believed the burn was permanent.
Community Outrage and Allegations of Betrayal
ZachXBT, known for exposing unethical practices in the crypto space, did not hold back in his criticism. In a post on X (formerly Twitter), he stated:
“CRO is no different from a scam. Your team just reissued 70B CRO a week ago that was previously burned ‘forever’ in 2021 (70% total supply) and went against the community’s wishes as you control the majority of the supply.”
This comment was a direct response to Marszalek’s announcement that Crypto.com had partnered with Trump’s Truth Social to launch a series of ETFs, including one featuring CRO.
Expanding on his criticism, ZachXBT pointed out that investors had bought CRO under the assumption that its supply was permanently capped at 30 billion tokens.
The sudden re-issuance of 70 billion tokens has dramatically altered the tokenomics, leading to accusations that Crypto.com has engaged in misleading practices.
A user reacted to ZachXBT’s post with a simple “Damn…,” to which he responded:
For many in the crypto space, the issue goes beyond dilution. Token burning is widely regarded as an irreversible action that enhances scarcity and increases value.
Crypto.com’s decision to reverse a previous burn breaks this fundamental principle.
The Strategic Reserve and ETF Ambitions
Unchained Crypto, who was among the first to report the issue, noted that Cronos Labs, a Crypto.com subsidiary, decided to reissue 70 billion CRO as part of a broader plan to establish a “Strategic Reserve.”
The stated goal is to fund growth initiatives, including launching the world’s first CRO-backed exchange-traded fund (ETF).
However, critics argue that the move is primarily about control and profit. The re-issuance effectively grants Crypto.com and Cronos Labs the power to manipulate supply and demand at will.
The decision was made unilaterally, with Crypto.com holding enough voting power to push it through despite widespread opposition.
CRO’s price performance further amplifies the controversy. The token is currently down 23% in the past year and 51% from its all-time high in November 2021.
While Crypto.com’s leadership insists that the move is necessary to drive institutional adoption, many investors see it as a blatant cash grab that could ultimately damage CRO’s long-term value.
Crypto.com’s push for an ETF follows the success of Bitcoin and Ethereum ETFs. However, CRO’s prospects remain uncertain.
The token ranks 56th by market capitalization, far behind other digital assets like Solana and XRP that are also seeking ETF approval.
Growing Unethical Practices In the Crypto Space
In relation to the growing unethical practices in crypto, ZachXBT has recently exposed the identity of the “HyperLiquid Whale,” a trader who amassed nearly $20 million through high-leverage crypto trading.
The trader, identified as William Parker, a convicted fraudster with a history of financial crimes, used illicitly obtained funds from phishing scams and casino exploits to place high-risk bets on platforms like Hyperliquid and GMX.
His connections to gambling platforms, phishing schemes, and illicit wallets further suggest that his market success was built on deception rather than skill.
As the crypto community watches closely, the exchange must answer the question of the re-issuance of 70 billion CRO before investor confidence can be restored.
Whether Crypto.com can weather the storm and convince investors of its long-term vision remains to be seen, but for now, the move has left many questioning the integrity of one of the industry’s most prominent exchanges.
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