Crypto.com is at the center of controversy following its decision to reissue 70 billion CRO tokens, reversing what was once hailed as the largest token burn in history. This move has ignited heated debates within the crypto community, with concerns about centralization and governance integrity taking center stage.
The Reversal of a Historic Burn
In 2021, Crypto.com burned 70 billion CRO tokens to reduce supply and bolster the decentralization of the Cronos blockchain. This strategic move was widely praised as it signaled a commitment to a more community-driven network.
Fast forward to 2025, and that narrative has taken a dramatic turn. Crypto.com has announced the reissuance of the previously burned tokens, placing them in a “Cronos Strategic Reserve” escrow wallet. This effectively restores the total CRO supply to 100 billion tokens, raising concerns over the platform’s long-term vision and adherence to decentralization principles.
Governance Vote Sparks Manipulation Allegations
Crypto.com justified the move by citing governance approval, but the legitimacy of the vote is being called into question. Reports suggest that the exchange controls between 70% and 80% of the voting power, allowing it to push decisions through with minimal resistance. Critics argue that this level of influence undermines the very concept of decentralized governance.
One vocal community member remarked, “This is nothing short of manipulation—when one entity holds the majority of voting power, governance becomes an illusion.”
Community Reaction and CEO’s Defense
The backlash has been swift. Many argue that instead of minting new tokens, Crypto.com should have used its reported $1 billion profit to repurchase CRO from the market, which would have supported token value and investor confidence. The decision to issue new tokens instead has led to speculation that the platform prioritizes its own reserves over community interests.
Crypto.com CEO Kris Marszalek has attempted to quell concerns, stating that the firm remains financially strong and compliant with regulations. However, his response has done little to ease skepticism, with investors eagerly awaiting an upcoming Ask Me Anything (AMA) session on March 25, where the topic is expected to dominate the discussion.
Should Investors Be Concerned?
For traders and long-term holders, the key takeaway is the fundamental shift in Crypto.com’s approach. The move raises questions about supply integrity and whether similar decisions could impact token value in the future. While the reissuance does not necessarily signal immediate instability, it highlights the risks associated with platforms that retain significant control over governance mechanisms.
Whether this presents a buying opportunity or a warning sign depends on how the situation unfolds. If Crypto.com successfully addresses community concerns and reassures investors of its long-term commitment to transparency, CRO could stabilize. However, continued skepticism could dampen confidence, impacting price action negatively.
Disclaimer: This article is for informational purposes only and should not be considered financial or investment advice.
