Crypto.com CEO Faces Backlash Over $1.5B Worth of CRO Re-Issuance

Crypto exchange giant Crypto.com is facing intense criticism following its recent decision to re-issue 70 billion Cronos (CRO) tokens, worth approximately $1.5 billion. The latest move has sparked outrage, with many accusing the exchange of undermining trust and manipulating governance processes on the Cronos blockchain.

The controversy resulted from a vote conducted on the Cronos blockchain, which initially led to a massive token burn aimed at reducing supply and increasing scarcity. However, reports suggest that Crypto.com reversed this decision through what critics call a manipulated governance process. The re-issuance of 70 billion CRO has raised concerns about centralization, transparency, and the integrity of blockchain governance.

Marszalek Responds to Community

Many crypto community members took to social media and forums to express their frustration. Some users accused Crypto.com of acting in bad faith by reversing a decision already being voted on. Others pointed out that such actions could severely damage investor confidence in CRO and Cronos as a blockchain ecosystem.

In response to the backlash, the company’s CEO, Kris Marszalek, defended the decision, noting that the re-issuance was necessary for the long-term sustainability of the Cronos ecosystem. Marszalek pointed out that the additional CRO supply would be allocated toward development, ecosystem growth, and network security.

Despite the explanation, many remain unconvinced. Investors are urging greater transparency in governance and calling for stronger safeguards to prevent unilateral decision-making in the future.

A Cronos Strategic Reserve 

Following the burn, a Cronos blog post on March 2 revealed a proposal to establish a Cronos Strategic Reserve by overturning the 2021 burn decision. Initiated on March 3, the vote faced significant backlash on social media, with many users criticizing the CRO re-issuance as being completely contrary to the community’s desires.

Despite strong community opposition, the vote ultimately passed in favor of creating a Cronos Strategic Reserve, fueling controversy and speculation about potential vote manipulation.

Meanwhile, following the controversy, CRO price has experienced a notable decline, with market sentiment turning bearish. If Crypto.com fails to address concerns about governance and transparency, the Cronos blockchain could face long-term reputational damage. At the time of publication, the crypto asset was changing hands at $0.08007.