The post Cronos (CRO) Surges 35% After Trump Deal, But 70B Token Reissue Sparks Investor Fears appeared first on Coinpedia Fintech News
Today in a press release, Trump Media announced that its upcoming ETFs and exchange-traded products will focus on “Made in America” digital assets, set to launch later this year pending regulatory approval. This marks another step in President Trump’s growing crypto involvement, following Trump-branded NFTs, memecoins, and plans for a crypto-focused bank. Following the news, CRO’s trading volumes surged by 1300%, hitting $278 million within 24 hours of the Trump Media partnership announcement.
However, after a strong rally, Crypto.com’s Cronos (CRO) is now facing sharp criticism, with allegations of misleading practices shaking investor confidence. The token initially surged 35% after Crypto.com’s high-profile partnership with Trump Media, but fresh concerns over a secretive 70 billion CRO re-issue have put the rally at risk.
As skepticism spreads, analysts are urging caution, warning that this could be a classic pump-and-dump scenario.
70 Billion CRO Tokens Reissued—A Breach of Trust?
Independent Blockchain investigator ZachXBT dropped a bombshell, accusing Crypto.com of reissuing 70 billion CRO tokens that were supposedly burned forever in 2021. This move effectively increases the supply and raises serious transparency concerns. ZachXBT called CRO “no different from a scam,” highlighting how investors had been led to believe that only 30 billion CRO remained in circulation. The revelation came just weeks before Crypto.com’s deal with Trump Media, raising questions about the timing and intent behind the token issuance.
Mixed Views
The controversy has triggered backlash in the crypto community, with users like Crypto_Rexy calling it a “massive red flag.” ZachXBT also questioned why Trump Media’s Truth Social chose to partner with Crypto.com over more established exchanges like Coinbase or Kraken.
Another user, CoinBaron argues that while Cronos (CRO) is centralized due to Crypto.com controlling most validator voting power, calling it a scam is an exaggeration. He points out that true decentralization was never part of CRO’s design, and in the end, retail investors mostly care about price increases.
Trump Deal Sparks Hype, But Will CRO Hold Its Gains?
Despite the controversy, the Trump-Crypto.com deal sent CRO soaring past $0.10, with trading volume skyrocketing by 1300% to $278 million. The partnership aims to launch ETFs and ETPs focused on U.S.-backed digital assets, including Bitcoin and CRO. However, analysts warn that the hype might not last, as the CRO ETF still faces regulatory hurdles, and trust in Crypto.com has been shaken.
With CRO’s price rally now under scrutiny, investors are left wondering—will the token continue to rise, or is a major correction incoming? Only time will tell.