ZachXBT Slams Crypto.com

The cryptocurrency community criticizes Crypto.com for redistributing 70 billion Cronos (CRO) tokens that were burned in 2021. Critics say the action goes against the industry’s openness and decentralization guiding principles.

ZachXBT, an on-chain investigator, accused Crypto.com of re-issuing Cronos tokens deemed permanently withdrawn from circulation in a post on X on March 25. ZachXBT claimed that the re-issued quantity equaled 70% of the token’s supply, saying it is the same as a scam since crypto.com controls most of the supply.

The team redistributed 70B CRO a week ago, which was initially burned in 2021 and acted against the community’s wishes. The token re-issuance came after it was announced that Trump Media and Crypto.com had reached a non-binding agreement to introduce US cryptocurrency exchange-traded funds (ETFs) via Foris Capital US, Crypto.com’s broker-dealer.

A sudden rise in token supply may reduce the value of existing tokens, resulting in price drops due to supply and demand.

Crypto.com CEO Addresses CRO Criticism

Meanwhile, Kris Marszalek, CEO of Crypto.com, responded that the action was required to encourage investment growth in the US. During an Ask Me Anything (AMA) session on X on March 25, Marszalek stated that Cronos and Crypto.com have worked independently for years.

Crypto.com’s Governance and Decentralization Issues

Critics have also raised the possibility that the voting process for the re-issue was altered. GitHub users stated that the exchange’s validators have up to 70% of the blockchain’s voting power, allowing them to nullify votes cast by the community.

Last week, Marszalek used X to point out the company’s regulatory and financial stability amid the ongoing dispute surrounding the re-issue of 70 billion Cronos tokens. In a since-deleted blog post from February 2021, Crypto.com first revealed the 70-billion-CRO token burn, calling it the most significant token burn in history.

In that post, the crypto company stated its goal was to fully decentralize the network once it launched the CRO mainnet.

CRO Price Shoot 30% Following Trump Media’s ETF Announcement

Meanwhile, Trump media and Crypto.com have announced a partnership to create Exchange-Traded Funds (ETFs) with the Truth.Fi name. According to Crypto.com, well-known for its credit card processing business, the ETFs will be available in its app once launched.

The news caused the CRO price to rise more than 30% and hit a new monthly peak.

CRO Price’s Technical Analysis

The CRO price has risen since September 2023, reaching the cycle peak of $0.233 in December 2024. While the CRO price has recovered, technical signals are not positive yet.

While the Relative Strength Index (RSI) is improving, it is still at 50. The Moving Average Convergence/Divergence (MACD) produces a similar reading.

Although it is still below zero, this indicator is trying to form a bullish cross. Also, the weekly timeframe does not indicate if the CRO price has begun a bullish trend reversal or only a relief recovery.

A Rally in Early March

According to the daily chart, on March 6, when the Cronos Strategic Reserve Proposal was announced, the CRO price broke out from a descending resistance trend line. The breakout follows a five-wave downward trend that ended on February 28.

According to the wave count, the current increase is merely a relief rally, indicating a bearish pattern. In contrast, technical indicators on the 7-day chart show bullish trends.

The MACD, which has produced a positive bullish divergence (orange), makes this particularly clear. According to the daily time frame, the CRO increase is expected to continue in April, but the weekly one is unclear.

The technical indicators regarding the CRO price were already bullish before the ETF announcement. Although the CRO price may rise over the short term, there are no clear indications of its long-term trend.

CRO trades at $0.1044, up 26.9% in the last day and 23.4% over the past 30 days.