The name of the game IS Sonic Crackers, as the ROM header name doesn't count.
The game was rumored to have been Sonic the Hedgehog 4. Many say this is false as the Sonic the Hedgehog 3 sprites were not used in the prototype.
This would later become Knuckles' Chaotix for the Sega 32X.
The Sonic Crackers ROM is likely a submissions ROM, which is used to test new ideas to see if the SEGA management likes the game or not.
The game has Sonic the Hedgehog and Tails joined together by a band of rings.
The ROM has three levels. One is a level that swaps palletes and different iterations of the same song. After 3 minutes, or if the player reaches the end of the stage, that level ends and the player is brought to an adventure field. If the player pauses and hits a button, the game goes to a carnival-like level that goes around in an infinite loop. When 1 minute elapses, the circus level ends and another adventure field begins. After the player pauses and hits another button, he or she is brought back to the pallete swapping level with another pallete.
There are two flavors of Sonic Crackers. They are the 1MB dump and the 2MB overdump. The 2MB overdump contains about half of a prototype Teenage Mutant Ninja Turtles game. The precise game that the prototype is for has not been determined.
Knuckles' Chaotix, the final game, highlights Knuckles the Echidna or another member of the Chaotix crew joined together by a band of rings.