Cronos (CRO), the native token of Crypto.com, saw an explosive price rally after news broke of a partnership with Trump Media. Within 24 hours, trading volume soared by 1,440%, reaching $319 million, while the price of CRO jumped 35%, crossing the $0.10 mark.
On March 24, Trump Media issued a press release announcing plans to launch an ETF and other investment products focused on U.S.-based digital assets — including Bitcoin and CRO. These products are expected to hit the market by the end of the year, pending regulatory approval.
Controversy Over Token Reissuance
While the community was digesting the Trump Media news, controversy erupted in the crypto space. Blockchain analyst ZachXBT, citing the Unchained team, alleged that Crypto.com had reissued 70 billion CRO tokens that were previously publicly burned in 2021.
According to ZachXBT, this called into question the project’s transparency and contradicted earlier promises that only 30 billion CRO would remain in circulation.
He described the situation as "indistinguishable from a scam" and argued that investors were misled, especially considering the timing of the disclosure — just weeks before the Trump Media deal was announced.
Community Reactions
The revelations sparked a wave of criticism across social media. One X user, @Crypto_Rexy, called the situation "a massive red flag." Questions also arose regarding Truth Social’s choice to partner with Crypto.com instead of more transparent exchanges like Coinbase or Kraken.
However, opinions remain divided. A user known as CoinBaron pointed out that although Cronos remains centralized, given that validator voting is controlled by Crypto.com, this does not necessarily make it a scam. He argued that most investors care more about price performance than decentralization.
Focus on American-Made Tokens
According to Trump Media, the planned ETF and other products will focus on “Made in the USA” digital assets. The lineup includes Bitcoin, stablecoins, and CRO. This move continues Donald Trump's influence in the crypto market, following earlier initiatives involving NFTs and memecoins.
Strategic Implications and Caution from Analysts
Despite the surge in CRO’s price, analysts urge caution. The excitement could be short-lived, and Trump Media’s ETF still faces regulatory hurdles before it can go to market.
Meanwhile, concerns over the alleged reissuance of burned tokens have shaken trust in Crypto.com, and the future of CRO remains uncertain.
This post is for informational purposes only and is not an ad or investment advice. Please do your own research making any decisions.