Crypto.com reissues 70B burned CRO tokens amid governance backlash

Crypto.com has reignited controversy by reissuing 70 billion Cronos (CRYPTO:CRO) tokens previously burned in 2021, sparking accusations of supply manipulation and governance centralisation.

“CRO is no different from a scam,” blockchain investigator ZachXBT stated on X, condemning the move and criticising the exchange’s control over token supply.

The reissued tokens represent 70% of CRO’s total supply, reversing a 2021 burn intended to reduce inflation and boost investor confidence.

Critics argue the decision undermines decentralisation, as Crypto.com validators allegedly hold 70–80% of voting power on the Cronos blockchain, enabling them to override community votes.

A March 19 governance proposal passed despite 77.97% of participants opposing it, with only 11.86% support from entities controlling disproportionate voting power.

CEO Kris Marszalek defended the reissuance as a strategic response to shifting U.S. regulatory dynamics, claiming the original burn was a “defensive move” no longer necessary under the current administration.

He emphasised the need for “aggressive investment” to compete globally, dismissing concerns as short-term.

The controversy coincides with Crypto.com’s non-binding partnership with Trump Media to launch U.S. crypto ETFs, raising questions about the timing and rationale behind the token reissuance.

ZachXBT questioned why Trump Media chose Crypto.com over competitors like Coinbase or Gemini, given the exchange’s governance issues.

Analysts warn the reissuance could dilute token value, though CRO surged 30% post-announcement.

The tokens are now locked in the Cronos Strategic Reserve with a 10-year vesting period, intended to drive adoption through gradual releases.

At the time of reporting, the Cronos (CRO) price was $0.108.