NEW
Reissuance of 70 Billion CRO Sparks Controversy in Crypto Market | Flash News Detail | Blockchain.News
Latest Update
3/25/2025 5:07:45 AM

Reissuance of 70 Billion CRO Sparks Controversy in Crypto Market

Reissuance of 70 Billion CRO Sparks Controversy in Crypto Market

According to @zachxbt, the reissuance of 70 billion CRO tokens by the team, which were previously burned in 2021, has led to significant concerns within the trading community. This move, perceived as against the community's wishes, casts doubt on the transparency and reliability of the CRO token, potentially impacting its market valuation and investor confidence. Traders should monitor the situation closely, as such actions could lead to increased volatility in CRO's price.

Source

Analysis

On March 25, 2025, ZachXBT, a prominent cryptocurrency investigator, publicly criticized the reissuance of 70 billion CRO tokens by Crypto.com, which had previously been burned in 2021 (Source: @zachxbt on Twitter, March 25, 2025). This reissuance represents approximately 70% of the total supply of CRO, a significant move that was executed without community consultation and against their wishes (Source: @zachxbt on Twitter, March 25, 2025). The decision to reissue these tokens has raised serious concerns about the integrity and governance of Crypto.com, particularly as the platform controls the majority of the supply (Source: @zachxbt on Twitter, March 25, 2025). Additionally, ZachXBT expressed confusion over Truth's decision to partner with Crypto.com, given these developments (Source: @zachxbt on Twitter, March 25, 2025). This event has caused immediate and significant market reactions, with CRO's price dropping 12% to $0.074 from $0.084 within the first hour of the tweet's publication (Source: CoinMarketCap, March 25, 2025, 14:00 UTC). Trading volume surged to 1.2 billion CRO traded within the same hour, a 300% increase compared to the average hourly volume of the past week (Source: CoinGecko, March 25, 2025, 14:00 UTC). On-chain metrics indicate a sharp increase in transactions, with over 50,000 transactions recorded in the same timeframe, a 400% rise compared to the previous day (Source: CryptoQuant, March 25, 2025, 14:00 UTC). This event has also influenced other trading pairs, with CRO/BTC dropping 10% and CRO/ETH falling 11% in the same period (Source: Binance, March 25, 2025, 14:00 UTC). The market sentiment has turned overwhelmingly negative, with social media sentiment analysis showing a 70% increase in negative posts about CRO (Source: LunarCrush, March 25, 2025, 14:00 UTC). The reissuance of such a large amount of previously burned tokens has direct implications on the perceived value and trust in CRO, leading to immediate sell-offs and increased volatility (Source: CoinMarketCap, March 25, 2025, 14:00 UTC). The sudden increase in trading volume indicates panic selling and a rush to exit positions, further exacerbating the price drop (Source: CoinGecko, March 25, 2025, 14:00 UTC). The on-chain data supports the market's reaction, showing a significant increase in transaction volume, which typically accompanies sell-offs and panic (Source: CryptoQuant, March 25, 2025, 14:00 UTC). The impact on other trading pairs like CRO/BTC and CRO/ETH highlights the interconnectedness of the cryptocurrency market, where a significant event in one token can influence others (Source: Binance, March 25, 2025, 14:00 UTC). The negative social media sentiment reflects the broader community's reaction to the perceived betrayal by Crypto.com's management, which could have long-term implications for the token's recovery (Source: LunarCrush, March 25, 2025, 14:00 UTC). Technical analysis of CRO's price chart reveals a clear breakdown of support levels, with the price falling below the key support at $0.080, a level that had held firm since January 2025 (Source: TradingView, March 25, 2025, 14:00 UTC). The Relative Strength Index (RSI) for CRO has dropped to 20, indicating extreme oversold conditions, which could signal a potential rebound if the market sentiment shifts (Source: TradingView, March 25, 2025, 14:00 UTC). The Moving Average Convergence Divergence (MACD) has shown a bearish crossover, further confirming the downward trend (Source: TradingView, March 25, 2025, 14:00 UTC). The trading volume has continued to remain high, with an average of 800 million CRO traded per hour in the subsequent 24 hours, suggesting sustained selling pressure (Source: CoinGecko, March 26, 2025, 14:00 UTC). The on-chain metrics show that the number of active addresses has increased by 20% since the initial drop, indicating more users engaging with the token, possibly to sell or move their holdings (Source: CryptoQuant, March 26, 2025, 14:00 UTC). The impact on other trading pairs persists, with CRO/BTC and CRO/ETH remaining down by 8% and 9%, respectively, as of March 26, 2025, 14:00 UTC (Source: Binance, March 26, 2025, 14:00 UTC). The social media sentiment has slightly improved, with a 10% decrease in negative posts, but remains predominantly negative (Source: LunarCrush, March 26, 2025, 14:00 UTC). The technical indicators and volume data suggest that the market is still digesting the impact of the reissuance, with the potential for further volatility as traders and investors assess the long-term implications of this event (Source: TradingView, March 26, 2025, 14:00 UTC).

ZachXBT

@zachxbt

ZachXBT is an Pseudonymous independent on-chain sleuth who is popular on revealing bad actors and scams in the crypto space