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I am uploading an image of just 7Kb and still not able to use that as a icon for the native token. Does anyone know why ? I am using the "token-metadata-creator"(https://github.com/input-output-hk/offchain-metadata-tools).

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It would be useful to get more information about what error you are seeing.

But according to the CIP:

An icon to be used to represent the subject. Encoded as a PNG image, maximum size 64kb. 

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