- Crypto.com re-minted 70 billion CRO tokens, overriding community opposition and sparking accusations of manipulation.
- The re-minting will increase CRO’s supply by 200%, leading to concerns of price dilution and a potential drop to $0.06.
- Upcoming 20% token unlock intensifies bearish sentiment, adding to fears of further price decline.
Crypto.com has been under fire after increasing the supply of CRO tokens despite the majority voting against it. The community felt that the exchange acted against their interest, questioning the lack of transparency and raised manipulation concerns.
In 2021, the exchange initially burned 70 billion CRO tokens intending to reduces the circulating supply, potentially increasing the value of the remaining tokens. Back then, the move was well received by the community. However, tensions erupted when the team conducted a governance vote to decide whether to re-mint (re-issue) those 70 billion burned CRO tokens, restoring the total supply to 100 billion CRO.
Newly issued $CRO will go to a strategic reserve wallet under a multi-year vesting schedule. Independent validators largely opposed the proposal, but Electron, Antares, and Minotaur IV, validators linked to Crypto.com, accounted for 72% of votes, tipping the result.
From the initial voting results, it became clear as day that the community was overwhelmingly against re-minting. But, at the final hours of voting, several key validators (which are largely controlled by Crypto.com) swooped in and turned the decision in favor of re-minting, catching everyone by surprise and shock.
CRO Holders Fear Dilution as Supply Increases by 200%
The action sparked a major backlash in the community as they feel that Crypto.com has blatantly disregarded the majority mandate, accusing it of undermining the core ethos of decentralization.
A key concern against re-minting the 70 billion tokens was that it would significantly increase CRO’s circulating supply by a staggering 200% increase, which would subsequently dilute the value of each individual coin.
Following the decision, retail responded back by dumping the token as market analysts predict a further fall in the price due to the increased supply. A retest of $0.06 is on the horizon based on the ongoing FUD and potential manipulation.
Adding to the bearish sentiment is the upcoming 20% unlock where a large amount of the newly minted coins will be released into the market next week.
