Crypto.com is under fire after the controversial re-issuance of 70 billion Cronos (CRO) tokens once touted as the largest token burn in history sparking accusations of vote manipulation and a deepening trust crisis among investors.
Crypto.com CEO Kris Marszalek took to X on March 19 to reaffirm the firm’s financial and regulatory stability amid the ongoing controversy over the 70 billion Cronos (CRO) token re-issuance.
The reversal, which effectively cancels the 2021 burn aimed at decentralizing the Cronos network, has triggered widespread community outrage. Many now question the platform’s commitment to transparency and decentralization.
A Historic Burn Reversed
Back in 2021, Crypto.com proudly announced the burn of 70 billion CRO tokens as part of its mission to decentralize the network ahead of the Cronos mainnet launch. Nearly 60 billion tokens were destroyed immediately, with the rest allocated for gradual burns, ecosystem development, and block rewards.
That move was hailed as a milestone event in crypto history. However, in a surprising turn, a recent vote approved re-issuing the exact amount of burned tokens—restoring the total CRO supply to 100 billion.
The March 2 announcement cited the creation of a Cronos Strategic Reserve as the rationale, positioning the fund as critical for future network growth and strategic initiatives.
Community Outrage and Accusations of Manipulation
The proposal quickly met fierce resistance across social channels, with users accusing Crypto.com of betraying its original decentralization pledge. Critics argue that instead of leveraging profits—reportedly exceeding $1 billion—the exchange chose to inflate supply, potentially diluting token value.
Adding fuel to the backlash were claims of governance manipulation. Reports allege that Crypto.com controls between 70% and 80% of the voting power, rendering the process little more than a formality.
“Totally manipulated to come in at the last minute and vote yes,” one commentator wrote on GitHub. “There’s no real governance when CDC [Crypto.com] holds all the power.”
Despite overwhelming negative sentiment online, the proposal passed—intensifying accusations that the process was rigged.
Regulatory Silence and CEO’s Defensive Stance
Crypto.com CEO Kris Marszalek responded by reaffirming the company’s financial strength and regulatory compliance, but notably avoided addressing the re-issuance controversy in his statement.
Meanwhile, the community remains unconvinced. Many argue that this reversal undermines faith in the project’s governance and contradicts the principles of blockchain decentralization.
“This isn’t what the community voted for in 2021,” a user posted. “You don’t get to erase history because it’s convenient now.”
What’s Next? AMA Scheduled as Tensions Rise
In response to mounting pressure, Crypto.com announced an AMA (Ask Me Anything) session scheduled for March 25. The company promises to address community concerns, with the CRO re-issuance set to dominate the agenda.
Observers expect tough questions as users demand accountability and clearer explanations about the decision-making process behind the Strategic Reserve.
The Bigger Picture
The Cronos controversy highlights a broader industry challenge—balancing corporate control with genuine decentralization. As crypto projects scale, communities increasingly scrutinize how “decentralized” these networks truly are.
With institutional interest rising, governance issues like this could become flashpoints that define investor confidence in Web3 ecosystems. For now, Crypto.com faces the task of repairing damaged trust while explaining why reversing a record-setting token burn was necessary.
Takeaway
The 70 billion CRO re-issuance is more than a tokenomics issue—it’s a defining moment for Crypto.com’s credibility. How the platform navigates this backlash could shape its future standing in the competitive world of centralized exchanges and blockchain networks.
