Crypto.com Faces Backlash After Increasing the Supply of CRO Tokens Despite the Majority Voting Against It

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

Crypto.com has faced backlash for increasing the supply of CRO tokens despite the majority vote being against it. Community members are now reacting to the exchange’s actions, which they feel were to the detriment of the community. They are also raising concerns over a lack of transparency and potential price manipulation.

In 2021, Crypto.com burned 70 billion CRO tokens with the aim to reduce the circulating supply, which could potentially increase the value of the remaining tokens. At the time, the move was widely praised by the community. However, tensions flared up recently when the team opened a governance vote to decide whether to re-mint (re-issue) those 70 billion burned CRO tokens, returning 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.

As the final hours of voting approached, it was clear that the community was against re-minting. However, a last-minute surge in voting power from key validators ultimately swung the decision in favor of Crypto.com.

CRO Holders Fear Dilution as Supply Increases by 200%

The action has sparked a major backlash in the community as they feel that Crypto.com has blatantly disregarded the majority mandate, which they say undermines the core ethos of decentralization.

A key concern against re-minting the 70 billion tokens was that it would drastically increase CRO’s circulating supply by a staggering 200% increase, which would subsequently dilute the value of each individual coin.

After the decision, retail traders responded by dumping the token. Market analysts are now predicting a further fall in the price due to the increased supply. A retest of $0.6 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.