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Cronos' Trump Rally Loses Steam Amid Rising Worries Over Utility and Inflation

Cronos' Trump Rally Loses Steam Amid Rising Worries Over Utility and Inflation

Bitget-RWA2025/09/26 14:11
By:Coin World

- Cronos (CRO) lost $6B in market cap post-Trump partnership surge, now ranked 33rd at $6.6B. - Community questions CRO's utility as token price drops below $0.19, with critics calling it a "ghost town." - Regulatory scrutiny and supply inflation (100B tokens) compound concerns amid declining network growth. - CEO outlines 3 CRO price scenarios for 2026 tied to Trump Media's treasury fund execution and regulatory risks.

Cronos' Trump Rally Loses Steam Amid Rising Worries Over Utility and Inflation image 0

Cronos (CRO), the primary token for Crypto.com’s Cronos Chain, has lost the gains it made during a Trump-related surge, with its market cap dropping by more than $6 billion since reaching its highest point. After briefly jumping 40% in response to a joint $6.4 billion treasury announcement between

& Technology Group (TMTG) and Crypto.com in late August 2025, the token has slipped below $0.19, nearing its price before the news. According to CoinGecko, CRO has fallen out of the top 30 cryptocurrencies by market capitalization and now sits at 33rd place, valued at $6.6 billion. This drop has led to growing doubts within the community about the token’s demand and usefulness.

The collaboration, which initially pushed CRO to a three-year peak of $0.29, saw TMTG purchase 6.3 billion CRO tokens (worth $1.63 billion at the time) and secure a $5 billion equity line for future acquisitions. Crypto.com also agreed to invest $50 million in TMTG shares. Still, some critics say the partnership offers little practical benefit for CRO, with online discussions calling the token a “ghost town” and pointing to its lack of real-world use. One Reddit commenter remarked, “We’re getting rugged, just as I expected when that partnership was announced,” echoing widespread skepticism about the Trump-related narrative’s staying power.

The recent price drop has been linked to both overall market trends and internal issues within the Cronos network. The broader crypto sector has been under pressure, with

(BTC) falling below $110,000 and the Crypto Fear & Greed Index dropping to a record low of 30 in April 2025. On-chain data also shows Cronos’ network growth slowing, as new wallet addresses fell by 27% over two weeks. Additionally, the token’s supply increased from 30 billion to 100 billion in March 2025 after a disputed reissuance of 70 billion previously burned tokens, raising alarms about inflation and centralized control.

Regulatory concerns have added to the uncertainty. The U.S. Securities and Exchange Commission (SEC) ended its investigation into Crypto.com in March 2025 without taking action, but the inquiry had already caused CRO’s price to drop 12% earlier in 2024. The SEC’s renewed attention to crypto treasury disclosures—reaching out to over 200 firms—has also heightened worries about compliance. Crypto.com CEO Kris Marszalek has not directly addressed CRO’s price slump, instead focusing on the platform’s efforts to support tokenized collateral.

Looking forward, Marszalek described three possible outcomes for CRO in 2026, depending on how Trump Media’s treasury funds are rolled out. These scenarios range from $200 million in initial purchases to as much as $5.42 billion if all credit lines are used. Analysts believe the largest scenario could spark a “liquidity shock rally,” but there are still questions about regulatory barriers and whether such large-scale financing is realistic. Cronos’ roadmap for 2025–2026, which features infrastructure improvements and tokenization solutions, aims to attract institutional investors, but the token’s fate remains closely linked to the Trump Media partnership and overall market mood.

Source: [1] Cronos Erases Trump Gains, CRO Faces Demand Doubts [2] Cronos Soars 40% After Trump Media Ties In, But Not … [3] Cronos Blasts Off to 3-Year High After Trump Media's $6.4 Billion … [4] 3 Scenarios for CRO in 2026 After the Trump Media Deal [5] What Is Trump Media Group CRO Strategy? And Should Investors … [6] Cronos (CRO) Price Due for Retracement - BeInCrypto [7] The SEC investigation against Crypto.com has closed, and CRO rises [8] Is Cronos (CRO) Skyrocketing After SEC Closes Crypto.com Probe? [9] Cronos jumps nearly 50% on Trump Media and … [10] Trump Media Group's CRO Treasury: Here's Why Trump Media is …

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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