"Cronos is a Scam"... Controversy Erupts Over Trump-Crypto.com Partnership

After news of a partnership between Trump Media & Technology Group (TMTG), founded by President Donald Trump, and the cryptocurrency exchange Crypto.com emerged, criticism has been forming in the community.

On the 25th (local time), renowned cryptocurrency detective ZachXBT stated on X (formerly Twitter), "Cronos is no different from a scam," questioning why Trump Media & Technology Group chose Crypto.com as a partner instead of Coinbase, Kraken, or Gemini, just a week after 70 billion Cronos tokens, which were permanently burned in 2021, were reissued.

Earlier that day, according to some foreign media reports, Trump Media & Technology Group and Crypto.com signed a partnership to explore opportunities to sell digital asset ETFs in addition to U.S.-focused investment products through their platforms.

Specifically, Crypto.com plans to provide the cryptocurrency and technology that underpins digital asset ETFs and operate them through Foris Capital, a New Hampshire-based company acquired last year. Conversely, Trump Media will include Cronos, a cryptocurrency linked to Crypto.com, in the ETF as part of the partnership.

Crypto.com is a cryptocurrency business that benefited from President Trump's election. Last year, it was warned of a lawsuit by the Securities and Exchange Commission (SEC) for operating an 'unregistered securities exchange,' but after President Trump was elected, the SEC withdrew the lawsuit.

However, the community sentiment towards their partnership is not very positive. The reissuance of tokens permanently burned by Crypto.com's subsidiary Cronos (CRO) appears to be problematic. On the 2nd, Crypto.com unveiled a proposal to reissue 70 billion Cronos tokens, which were permanently burned, to be included in strategic reserve assets after President Trump announced a cryptocurrency reserve plan. The reissued amount accounts for 70% of the total supply of 100 billion Cronos. As more than half of the supply enters the market, there has been backlash among investors. One whale expressed concern, saying, "This is a massive dilution of token value," and "No one benefits except the company."

In this situation, as the partnership between Trump Media Group and Crypto.com was announced, investors are expressing negative reactions such as "It's unethical," and "Crypto.com tends to change rules impulsively without considering investors."

Meanwhile, as of 2:48 PM on the same day, Cronos is trading at $0.1107, up 34.21% from the previous day according to CoinMarketCap.