On March 25, the blockchain investigator ZachXBT accused Crypto.com of quietly bringing back 70 billion CRO tokens that were originally declared permanently burned in 2021. The tokens belong to the Cronos (CRO) blockchain, which is closely linked to Crypto.com.
ZachXBT Claims 70% of CRO Token Supply Was Silently Reintroduced
In 2021, Crypto.com burned 70 billion CRO tokens. Burning means permanently removing tokens from circulation to reduce supply. At the time, Crypto.com said this was done to help decentralize the Cronos network before its mainnet launch. They even called it the “largest token burn in history.”
However, ZachXBT now claims that Crypto.com reissued the same 70 billion tokens just a week ago. That amount represents about 70% of CRO’s total supply. ZachXBT posted on social media platform X, saying, “CRO is no different from a scam.” They also said Crypto.com ignored the community’s expectations and used its control over the network to make the change.
Reissuing such a large amount of tokens can affect the value of CRO. When the supply of a token increases suddenly, it often leads to a drop in its price because there are now more tokens available in the market.
Critics say the decision goes against the values of transparency and decentralization. Many people in the crypto space believe that once tokens are burned, they should never return. Bringing them back breaks that trust.
There are also questions about how the decision was made. Reports suggest that Crypto.com controls 70% to 80% of the voting power on the Cronos blockchain. This means they can approve major changes, even if the wider community disagrees.
CEO Defends Move As Strategic Shift
In a public AMA (Ask Me Anything) session on X, Crypto.com CEO Kris Marszalek defended the decision. He said the original burn in 2021 was done as a “defensive move.” Now, he believes times have changed. He pointed out that with better support from the U.S. government, there’s a chance to invest more aggressively in the U.S. market.
“This is what the community wants,” Marszalek said. “It’s like thinking in cents when we should be thinking in dollars.”
He also said Cronos and Crypto.com have been operating as separate entities for years.
The token reissuance came shortly after news broke that Trump Media had signed a non-binding agreement with Crypto.com. The deal involves launching U.S.-based crypto exchange-traded funds (ETFs) through Crypto.com’s U.S. affiliate, Foris Capital.
ZachXBT questioned the timing of the deal and criticized Trump Media’s decision to work with Crypto.com instead of other exchanges like Coinbase, Kraken, or Gemini.