Crypto.com's Bold Move: Reviving $70B CRO Tokens

Crypto.com, the blockchain ecosystem operator, has proposed a peculiar plan to revive 70 billion CRO tokens that were burned in 2021. The proposal, dubbed "The New Golden Age for Cronos," aims to restore the original 100 billion token supply by reissuing the tokens into a "Strategic Reserve" escrow wallet, to be vested monthly over 10 years.

The original burn in 2021 reduced the CRO supply from 100 billion to 30 billion, which was hailed as a move to boost the token's value. The price of CRO increased from 6 cents to 25 cents in a few weeks following the burn. However, the recent proposal has left the community largely flummoxed, with many questioning the motives behind the decision.

The motive behind the proposal is a $5 billion push to cement U.S. crypto dominance, fund ecosystem growth, and launch a CRO ETF. The team expects the move to "onboard billions" of potential users and integrate CRO with institutional liquidity pools. However, the community has reacted swiftly and largely critically to the proposal, with many expressing concerns about the potential dilution of value.

Community members have taken to social media to express their disapproval of the proposal. User @WalkingTall101 stated, "This is the opposite of what #CROfam wants. The 2021 burn was a landmark moment for #CRO, a signal of commitment to scarcity and growth. Undoing it now feels like a step backward, diluting our trust and the chain’s potential."

Crypto.com ambassador @Wyll_BBK also expressed his disapproval, stating, "A burn is a burn, burnt tokens shouldn’t be brought back to life. I’m almost never against anything happening on Cronos, but today, I’m against it, big time!"

The fate of the proposal hinges on a governance vote, with 86% of votes against, 8.6% abstaining to participate, and just 4.68% voting in favor as of Monday. The vote runs until Mar.17. Despite the community's concerns, CRO prices have increased by 8% in the past 24 hours, in line with a broader market jump.