Crypto.com’s $5 Billion Token Mint Sparks Insolvency Fears and Community Backlash
Crypto.com, one of the largest cryptocurrency exchanges, is under fire after a controversial decision to mint 70 billion CRO tokens, worth approximately $5 billion. The move has ignited fears of potential insolvency and raised questions about the platform’s financial transparency.
CRO, the native token of the Crypto.com ecosystem, is used for transactions, staking, and rewards on the platform. The decision to remint tokens previously burned in 2021 has drawn sharp criticism from the crypto community. The 2021 token burn was initially marketed as a strategy to reduce supply and bolster CRO’s long-term value. However, the recent proposal to reintroduce the 70 billion CRO supply has been perceived as a reversal of that commitment.
On March 2, 2025, Crypto.com put the proposal to a vote, which passed despite opposition from independent validators. Critics argue that the exchange’s disproportionate control over voting power influenced the outcome. Following the vote, CRO’s price dropped by 5.2%, falling to $0.077.
Community Skepticism and Historical Concerns
The controversy has been amplified by a viral Reddit post from user u/GabeSter on r/CryptoCurrency, which highlighted Crypto.com CEO Kris Marszalek’s controversial business history. Before founding Crypto.com, Marszalek led Ensogo, an e-commerce platform that collapsed in 2016, leaving investors and vendors in financial distress.
The post also referenced Crypto.com’s earlier rebranding from Monaco (MCO), which raised $26 million in an initial coin offering (ICO) before pivoting to acquire the Crypto.com domain. In 2020, the platform allegedly forced MCO holders to swap their tokens for CRO at unfavorable rates, a move some viewed as a bait-and-switch tactic.
The latest token minting proposal has further eroded trust in the platform. While Marszalek claims the new tokens will create “sustainable flows on the demand side,” critics argue that the move is a thinly veiled attempt to inject liquidity at the expense of existing token holders. Many have likened the situation to a “money printer,” where the exchange can generate billions in tokens without cost, potentially devaluing current holdings.
Transparency Issues and Audit Concerns
Adding to the skepticism, Crypto.com has not released an audited financial statement since 2022. Following the collapse of FTX, the exchange shared a proof-of-reserves audit in December 2022, but the auditing firm, Mazars, later distanced itself from the report, citing concerns over incomplete liability disclosures. Since then, Crypto.com has not provided updated audits, raising further questions about its financial health.
Community Demands Clarity
In response to the backlash, Marszalek has denied insolvency rumors but has yet to address the community’s concerns in detail. The lack of transparency surrounding the $5 billion token mint has led many to view the move as an act of desperation, drawing parallels to failing companies attempting to stay afloat.
While there is no concrete evidence of insolvency, the controversy underscores the need for greater transparency in the crypto industry. Until Crypto.com provides a clear explanation of how the newly minted tokens will be used and releases updated financial audits, the community is likely to remain skeptical of the platform’s long-term viability.
As the situation unfolds, investors and users are calling for accountability, emphasizing that trust and transparency are critical in an industry still recovering from high-profile collapses like FTX and TerraLUNA.
