Community slams Crypto.com CEO over 70B CRO re-issuance

Major cryptocurrency speech Crypto.com came nether occurrence pursuing an allegedly manipulated ballot starring to a monolithic token pain reversal connected Crypto.com’s Cronos blockchain.

Crypto.com CEO Kris Marszalek took to X connected March 19 to highlight the firm’s fiscal and regulatory stableness amid the ongoing contention implicit the 70 cardinal Cronos (CRO) token re-issuance.

Essentially canceling the 70 cardinal CRO token burn announced successful 2021, the ballot connected bringing backmost the tokens has triggered outrage from the community, with galore commentators criticizing the CEO for not addressing the contented successful his caller thread connected X.

“So you made $1 cardinal nett but needed to excavation 70 cardinal CRO alternatively of utilizing those funds to bargain immoderate disconnected the marketplace and assistance your halfway assemblage stay positive,” 1 commentator wrote.

Source: Crypto.com CEO Kris Marszalek

“The largest token pain successful history”

In February 2021, a now-deleted Crypto.com station disclosed successful February 2021 successful a now-deleted station connected the Crypto.com blog that the 70 cardinal CRO token pain was called the “largest token pain successful history” with a extremity to “fully decentralize the network” astatine the CRO mainnet launch.

“Aligned with our belief, and with the CRO concatenation mainnet motorboat conscionable astir the corner, we are afloat decentralizing the concatenation network,” the blog station said, announcing an contiguous pain of 59.6 cardinal tokens.

A screenshot from a now-deleted Crypto.com blog station connected the 70 cardinal CRO token burn. Source: Archive.today

Following the contiguous 59.6 cardinal CRO burn, 0.4 cardinal of the remaining tokens were directed to monthly burns, portion different 5.9 cardinal CRO was sent to artifact rewards, and 0.9 cardinal CRO was allocated to Particle B for concatenation ecosystem development.

Why reverse the burn?

In 4 years pursuing the burn, a Cronos blog station connected March 2 announced a ballot connected the instauration of a Cronos Strategic Reserve by reversing the 2021 token burn.

“In 2021, 70 cardinal CRO were burnt successful 1 of the astir important pain transactions successful history. Under today’s proposal, an adjacent fig of tokens volition beryllium re-issued connected Cronos POS into a Cronos Strategic Reserve escrow wallet, bringing the full proviso backmost to the archetypal proviso of 100 cardinal CRO,” the announcement said.

An excerpt from Cronos’ ballot connection connected reversing the 2021 CRO token burn. Source: Cronos

Launched connected March 3, the ballot received tons of antagonistic feedback from the assemblage connected societal media, with galore posters urging that the CRO re-issuance was the “opposite of what this assemblage wants.”

Related: Binance announces assemblage voting mechanics for token listings

“I anticipation that radical ballot against this, this is simply a unspeakable idea,” 1 commenter said.

Last-minute voters approved re-issuance

Despite notable assemblage backlash, the ballot results came successful favour of a Cronos Strategic Reserve, spurring contention and speculation implicit alleged ballot manipulation.

“Totally manipulation to travel successful astatine the past infinitesimal and ballot yes, the CDC [crypto dot com] is arsenic centralized arsenic a blockchain tin be, and shouldn’t beryllium since there’s nary existent governance erstwhile 70% of the voting powerfulness is successful the CDC,” 1 GitHub commentator wrote.

CRO governance voting results amusement 70% enactment from the community. Source: Mintscan

According to Laura Shin’s Unchained sources, Crypto.com allegedly controls 70-80% of the full voting power, fundamentally removing the request for immoderate governance ballot astatine all.

Following the monolithic backlash, Crypto.com announced an ask-me-anything lawsuit coming connected March 25, with the CRO token pain seemingly becoming the main contented connected the agenda.

“Looking guardant to catching up with our assemblage connected Tuesday,” Crypto.com CEO said successful a March 19 station connected X, adding the hashtag “MakeCROGreatAgain.”

Cointelegraph approached Crypto.com for a remark regarding the pain reversal but did not person a effect astatine the clip of publication.

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