Trump Media just made a bold move into crypto. The company has announced plans to launch exchange-traded funds (ETFs) and other digital asset products focused on “Made in America” cryptocurrencies. Set to launch later this year, the project is still awaiting regulatory approval.
This marks yet another step in President Trump’s growing involvement in the crypto world – following Trump-branded NFTs, memecoins, and even plans for a crypto-focused bank. But while the news sent trading volumes for Crypto.com’s Cronos (CRO) soaring by 1300%, reaching $278 million in 24 hours, not everything is as it seems.
A brewing controversy over hidden token re-issuance is now threatening to shake investor confidence. Let’s break it down.
While CRO initially soared 35% on the Trump Media partnership news, it is now under fire over allegations of misleading practices. Investors are concerned about a previously undisclosed re-issuance of 70 billion CRO tokens – tokens that were thought to be permanently burned in 2021.
Blockchain investigator ZachXBT has accused Crypto.com of quietly increasing CRO’s supply, despite earlier claims that only 30 billion tokens remained in circulation. He called CRO “no different from a scam” and pointed out that the re-issuance happened just weeks before the Trump Media deal, raising questions about transparency and timing.
The accusations have sparked backlash across the crypto community. Influential trader Crypto_Rexy called it a “massive red flag,” while others questioned why Trump Media’s Truth Social partnered with Crypto.com instead of more established exchanges like Coinbase or Kraken.
Is CRO a Scam or Just Highly Centralized?
Not everyone believes the situation is as bad as it seems. Crypto analyst CoinBaron argues that while CRO is highly centralized – since Crypto.com controls most of its validator voting power—that has always been part of its design. He says retail investors care more about price gains than decentralization.
Despite the controversy, CRO’s price climbed past $0.10, fueled by excitement over the Trump Media partnership. The deal aims to launch ETFs and ETPs tied to U.S.-backed digital assets, including Bitcoin and CRO. However, analysts warn that the hype may not last. The planned CRO ETF still faces regulatory hurdles, and trust in Crypto.com has been shaken.
A Trump-backed crypto boom or just another ticking time bomb? Either way, the market is watching.
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