Crypto.com reissues 70 billion CRO tokens amid governance vote controversy, impacting market confidence.
Crypto.com recently passed a controversial vote to reissue 70 billion CRO tokens, with the proposal supported by 61.18% of votes.
The event raises concerns about governance centralization, affecting community trust and market sentiment, leading to a CRO price decrease.
Crypto.com Gains 61.18% Approval for Token Reissuance
Crypto.com proposed a plan to reissue 70 billion CRO tokens, aiming to boost its ecosystem and establish a Cronos Strategic Reserve.
With a turnout of 70.18%, Crypto.com’s own votes swayed the decision, securing 61.18% approval amid governance concerns.
“We need this reserve to boost the ecosystem and support initiatives like an exchange-traded fund (ETF) based on CRO.” – Kris Marszalek, CEO of Crypto.com
CRO Price Dips 3% Following Token Decision
The vote’s passage caused a 3% CRO price drop, reflecting market unease over perceived voting manipulation by Crypto.com.
The community expressed discontent over governance centralization, fearing lasting impacts on Crypto.com’s credibility and transparency.
Lessons from 2016 DAO Hack and Governance Pitfalls
Similar controversies in blockchain history, like the 2016 DAO hack, highlight challenges in balancing centralized and decentralized decision-making.
Experts warn of potential negative repercussions on long-term trust if governance practices remain unchecked, stressing the need for reform.
