Crypto.com just pulled off a move that’s got the whole crypto community up in arms.
They’ve decided to mint 70 billion new CRO tokens, worth about $5 billion, reversing a 2021 burn that was supposed to boost the token’s value by reducing supply.
Debasement?
Now, you might wonder why this is such a big deal. Well, let me tell you, it’s like trying to put toothpaste back in the tube.
Once you’ve burned tokens, they’re gone for good… or so we thought. The backlash is fierce, with many fearing this could be a sign of insolvency.
Imagine if your bank suddenly decided to print more money without telling you, wouldn’t you worry about the value of your savings? That’s what’s happening here.
Crypto.com claims these new tokens will create sustainable demand, but critics say it’s just a way to inject liquidity at the expense of existing holders.
It’s like a money printer, where Crypto.com gets billions for free while devaluing everyone else’s investments.
The math checks out?
But here’s the kicker, based on the reports, Crypto.com hasn’t released an audited financial statement since 2022. Big red flag.
That’s like running a business without showing anyone the books, how can you trust it?
The community is demanding clarity, but so far, it’s been met with silence. CEO Kris Marszalek has a history of questionable decisions, and this move only adds fuel to the fire.
When transparency?
Now, I know what you’re thinking, is Crypto.com really insolvent? Well, there’s no concrete proof, but the lack of transparency isn’t helping at all.
It’s like trying to solve a puzzle with missing pieces. Until Crypto.com comes clean about its finances and how it plans to use these new tokens, many investors will remain skeptical.
So, is this a desperate move or a recipe for disaster? Only time will tell, but either way, Crypto.com’s got a lot of explaining to do.
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