Cronos has lost over $6B in value since the Trump Media partnership announcement.
The cryptocurrency Cronos (CRO) from Crypto.com has almost completely given back its gains achieved in the past month following the announcement of Trump Media Group. Following a rapid sell-off and weakness in the wider markets, CRO lost over of $6 billion in market cap.
Cronos, the native token of Crypto.com’s Cronos Chain, is priced at $0.1944, up 5.67% in the past 24 hours. It has a market cap of $6.77 billion, which represents a 50% drop from its peak of nearly $13.3 billion in August.
On Aug. 27, a joint treasury initiative between the Trump Media & Technology Group and Crypto.com was announced, valued at $6.4 billion. This announcement caused Cronos’ price to surge by 40%, as per reports.
Since then, CRO has continued to decline, dropping below $0.19 on Fri, 25, before a slight bounce.
The token has also dropped out of the top 20 cryptocurrencies, currently in 23rd place based on market capitalization, with a 24-hour trading volume of $123.7 million. However, over the last 24 hours, the trading volume has increased by nearly 76%.
Community probe increases
The recent price dip had ignited debate and concern within the Cronos ecosystem, as several commenters via X and Reddit have expressed concern for CRO’s utility due to a lack of demand and low on-chain activity.
One user claimed, that the community is “rugged” by further hype around partnerships.
Kris Marszalek, who is the CEO of Crypto.com, chose not to engage on the drop in CRO. Instead, he tweeted on Tuesday that Cronos supports the CFTC’s initiative for tokenized collateral and stablecoins. With that tweet, some critics pointed out that the SEC has not approved the Trump Media Group CRO’s strategy.
Moreover, reports from The Wall Street Journal indicate that U.S. regulators are investigating announcements related to corporate crypto treasuries.
