Crypto.com has found itself under intense scrutiny from the cryptocurrency community after a contentious decision to mint 70 billion CRO tokens, valued at around $5 billion. This move has raised concerns among users that the exchange may be facing financial instability, with fears of insolvency looming large.
CRO serves as the native cryptocurrency of the Crypto.com ecosystem, playing a pivotal role in transaction fees, staking, and rewards on the platform. The controversy erupted following Crypto.com’s proposal to reintroduce the previously burned tokens from 2021, a move that had initially been hailed as a strategy to bolster CRO’s long-term value by reducing its supply.
On March 2, 2025, the exchange put forth a proposal to remint the 70 billion CRO supply, sparking widespread backlash within the community. Despite facing resistance from independent validators, the proposal managed to pass due to Crypto.com’s significant control over voting power. This outcome led to a 5.2% drop in CRO’s value, plummeting to $0.077.
The controversy surrounding Crypto.com’s token minting has further deepened skepticism about the exchange’s financial stability. Notably, Crypto.com CEO Kris Marszalek’s past business decisions, including his involvement with the now-defunct e-commerce platform Ensogo, have come under scrutiny. Additionally, the exchange’s history of contentious token swaps and the recent reminting proposal have only added to the skepticism surrounding its financial health.
Despite Marszalek’s claims that the additional tokens will help create sustainable demand flows, critics argue that the move is a thinly veiled attempt to inject liquidity at the expense of existing token holders. The community has likened the situation to a “money printer” scenario, where Crypto.com can generate new tokens without cost, thereby devaluing the holdings of current investors.
Moreover, concerns about the exchange’s transparency have been amplified by the lack of recent audits. Crypto.com has not released an audited financial statement since 2022, with its last proof-of-reserves audit in 2022 being called into question by the auditing firm, Mazars. The exchange’s refusal to provide updated audits has raised further doubts about its financial transparency.
In response to the backlash, Marszalek has denied insolvency rumors but has largely remained silent on the issue. However, the community remains skeptical, viewing the token minting as a desperate move akin to tactics employed by struggling companies. While there is no concrete evidence of insolvency, the lack of transparency from Crypto.com has left many investors wary of its long-term prospects.
Moving forward, greater transparency and clarity from Crypto.com regarding the use of the newly minted tokens and updated financial audits will be crucial in rebuilding trust within the community. Until then, the exchange may continue to face scrutiny and doubts about its financial stability.