Crypto.com faces market manipulation allegations: ‘No different from a scam’

• Crypto.com faces backlash for reissuing 70 billion CRO tokens despite a prior burn commitment.
• CRO surged 35% after Crypto.com’s partnership with Trump Media, but scam allegations persist.

In an unexpected turn of events, Crypto.com faces intense scrutiny following allegations of deceptive financial tactics. 

This coincided with a significant price surge in Cronos [CRO] tokens, which skyrocketed 35% following the announcement of a partnership between Trump Media and Crypto.com to explore ETFs tied to Cronos, Bitcoin [BTC], and other assets.

However, the deal remains non-binding and would require SEC approval, leaving its future uncertain.

ZachXBT versus Crypto.com

Amidst this, blockchain investigator ZachXBT, known for uncovering crypto scams, has accused Crypto.com of reissuing 70 billion CRO tokens, contradicting its 2021 commitment to permanently burn them.

His allegations surfaced on X just as Crypto.com announced a high-profile partnership with Truth Social, the social media platform owned by Trump Media & Technology Group (TMTG).

 ZachXBT noted, 

“CRO is no different from a scam. Your team just reissued 70B CRO a week ago that was previously burned ‘forever’ in 2021 (70% total supply) and went against the community’s wishes as you control the majority of the supply.”

As expected, this has ignited a wave of backlash, with many investors feeling deceived.

That being said, the exchange had previously assured users that these tokens were permanently burned as a deflationary measure to enhance value and trust.

However, blockchain records now reveal their re-minting, leading to accusations of market manipulation.

Community reacts

Critics argue that Truth Social would have been better off partnering with more established exchanges like Coinbase, Gemini, or Kraken rather than aligning with Crypto.com amid these controversies.

Remarking on the same, crypto commentator Gem Insider remarked, 

“CRO’s out here doing a full 180 like it’s auditioning for The Real Scams of Crypto.” 

Additionally, allegations suggest that Crypto.com CEO Kris Marszalek may have leveraged his influence to finalize the Truth Social deal.

For instance, X user Solionxbt, took to X and added, 

“Kris must be lobbying hard.” 

Adding to the fray was another user, who said, 

Source: MCM/X

However, despite the growing controversy, Crypto.com has yet to provide a comprehensive response to the allegations, leaving its reputation hanging in the balance.

Additionally, the market sentiment remains mixed, as CRO has surged over 25% in the past 24 hours, trading at $0.103, according to CoinMarketCap.