ZachXBT Labels Crypto.com’s CRO Token a Scam Amid Trump Partnership and Token Re-mint Controversy

Crypto.com’s decision to re-mint 70 billion CRO tokens, previously burned in 2021, has sparked outrage and led blockchain investigator ZachXBT to label the token as a scam. Amidst this controversy, Crypto.com has announced a partnership with Trump Media to launch crypto-based ETFs.

• ZachXBT accuses CRO of being a scam.
• Crypto.com partners with Trump Media for ETFs.
• 70 billion CRO tokens re-minted after 2021 burn.
• Community backlash against token re-mint.
• ETFs to include Bitcoin, CRO, and traditional securities.

Crypto.com’s move to re-mint 70 billion CRO tokens, previously burned in 2021, has ignited a firestorm within the crypto community. A token burn involves intentionally removing a cryptocurrency from circulation to reduce supply and potentially increase its value. Reversing this process, as Crypto.com has done, is seen as a betrayal of trust. This action directly contradicts the principle of permanence associated with token burns, and has led to serious questions about the integrity of the CRO token.

Blockchain investigator ZachXBT didn’t hold back, labeling CRO as “no different from a scam.” He criticized Crypto.com’s decision, stating,

“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 wishes as you control majority of the supply.”

Community member Wyll Bildeberg echoed this sentiment, expressing his dismay:

“A burn is a burn, burnt tokens shouldn’t be brought back to life. I’m almost never against anything happening on Cronos, but today, I’m against it, big time! If this pass, it will just be a confirmation that Cronos is heavily centralized, and so can’t be trusted.”

Such strong reactions highlight the community’s belief in the sanctity of token burns and their disappointment in Crypto.com’s reversal.

The CRO community has reacted with significant backlash, viewing the re-mint as a violation of the principle that token burns are permanent. John Doe, a long-time CRO holder, voiced his frustration, saying, “A burn is a burn, and bringing back tokens that were supposed to be gone forever undermines the entire project.” This sentiment resonates with many who feel betrayed by Crypto.com’s decision to reissue tokens they believed were permanently removed from circulation.

Despite the uproar, Crypto.com is pushing forward with plans to launch crypto-based ETFs in partnership with Trump Media under the Truth.Fi brand. These ETFs, dubbed “Made in America,” will include Bitcoin, CRO, and traditional securities, aiming for international distribution. However, with Crypto.com controlling 80% of CRO voting power, the re-mint proposal could be forced through despite community opposition. This move raises concerns about the centralization of decision-making power within supposedly decentralized systems.

The market has not been kind to CRO, with the token down 41% in the past year and a staggering 91% since its all-time high in November 2021. This downturn reflects the community’s loss of trust and broader market skepticism about the token’s future. It’s like watching a balloon slowly deflate after being pricked by the sharp needle of distrust.

Amidst this turmoil, the crypto industry is experiencing a positive shift under Trump’s second term. Binance CEO Richard Teng noted,

“It’s an extremely different environment that we’re operating in… We’ve benefited from this shift.”

Teng also claimed that Binance holds a global market share of over 40% and dismissed concerns about ETF dominance, suggesting a robust future for the crypto market despite the CRO controversy. This shift under Trump’s administration could potentially pave the way for greater mainstream adoption of digital assets, even as individual projects like CRO face their own battles.

Re-minting CRO tokens poses significant risks. It could lead to market flooding, dilute existing holdings, and further erode trust among the community, potentially damaging the token’s value and Crypto.com’s reputation. According to recent market analysis, such moves can have a long-lasting negative impact on investor confidence. The re-minting of tokens that were supposedly burned forever is like digging up a corpse you swore to bury deep in the ground—only to find out the neighbors aren’t too pleased about it.

While Crypto.com’s CEO Kris Marszalek defends the re-minting as necessary to support investment growth under the new political climate, arguing it aligns with community interests in the long term, the community remains skeptical. The re-minting and the subsequent proposal to burn 50 million CRO tokens have been met with derision, further highlighting the tension between centralized control and decentralized governance.

The controversy surrounding CRO and the partnership with Trump Media could serve as a case study on the challenges of maintaining decentralized governance in the face of centralized control. It also raises questions about the true decentralization of the Cronos blockchain. As the crypto world grapples with the CRO saga, it’s clear that the balance between innovation and integrity is more delicate than ever. The promise of decentralization remains a cornerstone of the crypto ethos, and actions like these test the very foundation of that promise.

Key Takeaways and Questions

• What led ZachXBT to label CRO as a scam?

  ZachXBT’s accusation stemmed from Crypto.com’s decision to reissue 70 billion CRO tokens that were previously burned in 2021, which he saw as a betrayal of community trust and a manipulation of token supply.

• How has the CRO community reacted to the re-mint proposal?

  The CRO community has reacted with significant backlash, viewing the re-mint as a violation of the principle that token burns are permanent and a move that dilutes their holdings.

• What is the significance of the Trump Media and Crypto.com partnership?

  The partnership aims to launch crypto-based ETFs, branded as “Made in America,” which could increase institutional investment in cryptocurrencies like Bitcoin and CRO, but it also raises concerns about the integrity of the CRO token.

• How has Trump’s second term impacted the crypto market?

  Trump’s second term has been perceived as a positive shift for the crypto industry, with policies that are seen as more supportive, leading to a favorable operating environment for crypto businesses.

• What is Binance’s stance on the current crypto market environment?

  Binance’s CEO, Richard Teng, views the current environment under Trump as a “fantastic reset” for crypto, noting that the company has benefited from this shift despite not operating in the U.S.

• What are the potential risks of re-minting CRO tokens?

  Re-minting CRO tokens could lead to market flooding, significant dilution of existing holdings, and a loss of trust among the community, potentially damaging the token’s value and the platform’s reputation.