Cronos Price Boosted by SEC Investigation Closure and Crypto.com’s Strategy
Cronos (CRO) has experienced a notable increase of almost 11% over the past 24 hours, briefly reaching above $0.11 on March 28th. Although the price has since stabilized around $0.10, the latest price action has propelled CRO’s weekly gains to nearly 40%. This surge follows a major development surrounding its parent company, Crypto.com.
SEC Closes Investigation into Crypto.com
In a significant move, the US Securities and Exchange Commission (SEC) officially closed its investigation into Crypto.com, informing the company that no enforcement action would be taken. This comes after months of tension between the exchange and the SEC, which had filed a lawsuit against Crypto.com in October 2024. The SEC alleged that the company was operating as an unregistered broker-dealer and securities clearing agency, claims which Crypto.com vehemently denied. However, following a change in political leadership with the re-election of Donald Trump as US President in December 2024, Crypto.com dropped its lawsuit, and many cryptocurrency-related cases, including those involving Kraken, Coinbase, and Uniswap, were subsequently shut down.
Crypto.com Faces Backlash Over Re-Issuance of CRO Tokens
Despite the SEC’s investigation closure, Crypto.com faces ongoing criticism for its decision to re-issue 70 billion CRO tokens, which had previously been burned in 2021 to decrease total supply. This controversial move sparked backlash within the crypto community, with some accusing the company of betraying its users and undermining decentralization principles. ZachXBT, a well-known blockchain investigator, even compared the move to a scam. In response, Crypto.com CEO Kris Marszalek defended the decision, emphasizing that it was necessary for the company’s growth strategy.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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