Trump Media and Crypto.com create a fund focused on blockchain.

Donald Trump enters the crypto arena again. Through Trump Media, his group partners with Crypto.com and Yorkville Acquisition to launch a structure estimated at $6.42 billion, entirely based on CRO. The goal is to build the largest public crypto treasury, with a listing expected on Nasdaq.#BNBATH900

In summary

  • Trump Media, Crypto.com, and Yorkville announce an unprecedented partnership to create the Trump Media Group CRO Strategy.

  • The project aims to build a public crypto treasury estimated at $6.42 billion, exclusively based on the CRO token.

  • A listing on Nasdaq under the symbol MCGA is expected, marking the project's entry into traditional markets.#BTC

  • The project is already generating criticism, mainly regarding the centralization of CRO and accusations of manipulation aimed at Crypto.com.

An unconventional treasury strategy: $6.42 billion for an empire in CRO.

While the group categorically denied false information about a secret crypto plan, the Trump Media and Technology Group, owner of the Truth Social platform, has allied with Crypto.com and Yorkville Acquisition in a definitive agreement to launch a new entity called Trump Media Group CRO Strategy, as announced in an official statement published on Tuesday.

This investment vehicle aims to create a treasury exclusively denominated in CRO, the native token of the Cronos blockchain, developed by Crypto.com. In their joint statement, the three entities express their desire to establish “the first and largest treasury company listed in CRO,” with unprecedented capital ambitions.

The statement details: “this capital will allow building the cryptocurrency treasury with the highest market capitalization/treasury ratio in history.”

The financial details of the operation confirm its magnitude, both in terms of value and structure: 🔥🔥🔥🔥

  • $1 billion in initial investment in CRO tokens, provided by the partners;

  • $420 million in liquidity and warrants, mobilized to support the development of the structure;

  • A $5 billion line of credit, provided by an affiliate of Yorkville Acquisition, intended to complete the treasury;

  • A listing expected on Nasdaq, with the ticker symbol MCGA, a direct reference to Donald Trump's political slogan.

The stated goal is to make this entity the largest crypto treasury ever listed, with a unique positioning around the CRO token. This project also represents a decisive step in the convergence between the crypto ecosystem, traditional stock markets, and Donald Trump's business ambitions in the digital sector.

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Staking, governance, and criticism: the backlash of a technological ambition.

Beyond simply holding cryptocurrencies, the Trump Media Group CRO Strategy demonstrates a clear willingness to generate long-term value through staking mechanisms.

Once the merger is finalized, the entity plans to mobilize almost all of its liquidity reserves to acquire CRO, with the aim of implementing a validator node on the Cronos blockchain.🔥🔥🔥

“The validator will be established and maintained by an experienced crypto-native team from the Cronos ecosystem, with the ambition of maximizing staking rewards,” says the document. This system should allow for a dynamic duality: securing the Cronos network while generating yields reinvested in the token.

However, this strategy is not without criticism. Crypto.com, the developer of Cronos and partner in the project, is regularly accused of excessive centralization. The CRO token, initially praised for its utility, has had its reputation tarnished after the cancellation of a burn of 70 billion tokens in 2021.

Furthermore, on-chain investigator ZachXBT publicly stated that the project “is no different from a scam,” accusing Crypto.com of supply manipulations and disproportionate control over the network's governance.

Some sources even claim that the exchange holds up to 80% of the voting rights in the CRO protocol, a number that, if confirmed, would raise serious questions about decentralized governance.

Beyond the technical aspects, this partnership crystallizes important political and regulatory issues. Donald Trump's direct involvement in a project tied to a controversial asset raises questions about the potential political use of these tools. If the promises of returns through staking are confirmed, this operation could strengthen the credibility of certain hybrid models between traditional finance and DeFi. On the other hand, excessive volatility of CRO or tensions in the governance of the network could quickly turn this bet into a complex legal and financial issue.