Crypto.com Accused of Fraud: Did They Secretly Re-Mint 70B CRO Tokens?
The post Crypto.com Accused of Fraud: Did They Secretly Re-Mint 70B CRO Tokens? appeared first on Coinpedia Fintech News
Soon after Crypto.com announced its plan to partner with Trump Media, an American media and technology company majority-owned by US President Doanld Trump, to launch crypto-based ETFs under the Truth.Fi brand, an on-chain investigator, ZachXBT, has accused the payment, trading and financial company of fraud, alleging that the company secretly reissued at least 70 billion CRO tokens that were burned in 2021, against the promise of a permanent token burn. Here is what you should know about the issue!
Why Is This a Big Deal?
In 2021, Crypto.com burned 70% of CRO’s total supply, reducing it from 100 billion to 30 billion.
It was Laura Shin who initially revealed that Cronos Labs decided to re-mint 70 billion CRO tokens for a new strategic reserve.
Many CRO token holders have expressed their concerns about the development. A long-time CRO supporter, dismissing the move to re-mint the burned tokens, notes: “A burn is a burn, burnt tokens shouldn;t be brought back to life.”
The total circulation supply of Cronos now stands at 27,408,853,450. Its market cap is $2,900,268,360 and its FDV is $10,307,330,727.
The new development may make CRO inflationary, reducing its scarcity and potentially lowering its value.
CRO has fallen over 91% since its all-time high in 2021.
In the last one year, the CRO market has experienced a drop of 31.2%. Though it has grown by 33.6% in the last seven days, it has dropped by 1.5% in the last 24 hours.
About Trump media’s Involvement: Explained
ZachXBT opines that Trump Media is not aware of Crypto.com’s fraud.
Anyway, CRO will be a main part of the proposed ETFs, even though Bitcoin and traditional securities will also play an equally important role.
However, the plan requires the approval of regulatory agencies.
Why Crypto.com Has Made a Power Move?
The decision to re-mint the burned tokens has been implemented through the community voting process. It is the dominance Crypto.com enjoys over the voting ecosystem that has helped the company to easily push the decision through the process. Crypto.com controls no fewer than 80% of voting power.
Many believe that re-minting of CRO is a power move by Crypto.com to maintain control.
Similarities Between FTX and Crypto.com: Exposed
A crypto investigator, identified as TruthLabs on X, reveals that Crypto.com is similar to FTX, the collapsed exchange.
He notes that both FTX and Crypto.com were part of the Silveragate Exchange Network before its shut down.
He also points out that like how FTX controlled its token, FTT, Crypto.com maintains its dominance over its token, CRO.
He states that both spent big on sponsorships. FTX sponsored NBA teams, while Crypto.com has naming rights to major arenas.
He even reveals that both received early funding from Binance. A Crypto.com Polygon address was originally funded by Binance, and one of its addresses on Polygon is liked to Binance on Ethereum.
His statements on the relationship between Crypto.com and Binance suggests that both are closely connected beyond normal business relationships.
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