Onchain Sleuth Zachxbt is accused of crypto.com CRO supply manipulation manipulation
Crypto.com faces criticism from the crypto community after the Cronos tokens were restored in 2021. Critics said the transition distorts the principles of decentralization and transparency in the cryptocurrency space.
The controversy exploded on March 25 after Onchain investigator Zachxbt Na -Post In X, accused of crypto.com of Reissuing Cronos (Cro) tokens expressed permanently removed from circulation. “The CRO is no different from a scam,” ZachXBT said, claiming the reissued value represented by 70% of the total supply and opposed the expectations of the community.
“Your team just reissued 70B CRO a week ago previously burned ‘Forever’ in 2021 (70% total supply) and opposed the community’s preference as you control most of the supply,” he added.
Reissuance followed the news that Trump media signed up An agreement that does not bind to Crypto.com to launch the US Crypto Exchange-Traded Funds (ETF) by Broker-Dealer of Crypto.com, Foris Capital US.
Source: Zachxbt
“Not sure why the truth will choose a partnership with your exchange with Coinbase, Kraken, Gemini, etc., after your team’s move,” Zachxbt added.
Suddenly a switch -switch supply of token can dissolve the cost of existing tokens, leading to price decline due to supply and demand mechanics.
Crypto.com CEO responds to backlash
In response, Crypto.com CEO CEO Kris Marszalek said the move is necessary to support investment growth under the new US political climate. “Cronos and Crypto.com have been running separately for years,” Marszalek said in a March 25 Father in X, adding:
“The original token burn from Q1 2021 was a defensive move. At that point in time, it made a lot of sense. Now we have strong support from the new administration, the war in crypto is over (…) there is a need for an aggressive investment to win.”
Source: Crypto.com
“This is what the community wants, just as the cents are thinking about when we should think of the dollar,” he added.
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Concerns about management and decentralization
Critics have also raised concerns that the voting process allows the repair can be manipulated.
On March 19, Cointelegraph reported that GitHub users claimed Validators control up to 70% of Blockchain voting power, giving them the ability to overthrow community votes.
According to the unidentified resources of Laura Shin, it is said to crypto.com Controls 70% -80% of the total voting power, it is important to eliminate the need for any management vote.
Marszalek brought to X on March 19 to I -Highlight Financial stability and regulation of the company amid ongoing controversy over 70 billion re-issues of the Cronos token.
Source: Kris Marszalek
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Originally the crypto.com revealed The 70-billion-cro token burn in a now deleted blog post of February 2021, referring to it as the “largest token burn in history” with the aim of “fully decentralizing the network” in the launch of CRO Mainnet.
A screenshot from a post deleted crypto.com post to 70-billion-cro token burn. Source: Archive.Tayday
“Aligned with our beliefs, and with the launch of the CRO Chain Mainnet around the corner, we completely decentralized the chain network,” the blog post said, announcing an immediate burning of 59.6 billion tokens.
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