CRO slumped below $0.05 for the first time since late 2023.
Over a year after announcing the initial plans to complete several deals with the popular crypto exchange Crypto.com, Trump Media, the entity behind Truth Social, has backed off as it has now focused on other internal developments and an upcoming merger.
The native token of the platform reacted with an immediate nosedive that pushed it to just under $0.05.
Acquisition Plan Dies
Following the US presidential elections in 2024, the newly elected POTUS started making major crypto moves through some of the entities linked to his family. Some of them involved Crypto.com, which included an ETF deal and plans to accumulate $6.4 billion in CRO. Now, though, that initiative, which was supposed to be called Trump Media Group CRO Strategy and include Trump Media, crypto.com, and Yorkville Acquisition, appears to be the most significant casualty.
According to a shared announcement from all three parties, the plan has been mutually terminated as they cited “prevailing market conditions” as well as changing business and stakeholder priorities. This means that the original idea of receiving $1 billion worth of CRO supplied by Crypto.com and a $5 billion credit facility has been scrapped.
The exchange was also supposed to service certain anticipated ETFs from Yorkville America, but the parties have agreed not to pursue that collaboration either.
Axios reported that the Trump Media’s interim CEO, Kevin McGurn, wants the entity to focus on the tech firm around the media arm and pending merger with fusion energy company, TAE.
The partnership dissolution with Crypto.com is just the latest example of Trump-linked companies reducing their exposure to the industry. Most recently, the same firm sold another batch of its BTC portfolio, securing a fresh loss after buying the stack at prices near ATH levels.
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CRO Tumbles
The announcements of the initial deals last year sent the exchange’s native token soaring by double- and even triple-digit percentages, peaking at almost $0.40 in late August. Now, though, the effect is the opposite, as the token dumped to its lowest price position since October 2023 at just under $0.05.
Its market cap has slumped to under $2.4 billion, and it has fallen to the 37th position in that regard. The macro scale is quite painful as well, as CRO is down by over 94% from its all-time high of $0.89 marked in late 2021.