On March 2, 2025, Crypto.com announced a proposal to issue 70 billion CRO tokens to enhance their strategic governance position.
70B CRO Token Reissue Proposal Unveiled
The proposal by Crypto.com's CEO, Kris Marszalek, intends to reissue 70 billion CRO tokens to bolster the strategic position and drive the adoption of the Cronos ecosystem. Crypto.com’s COO, Eric Anziani, emphasizes the proposal’s focus on future ecosystem development, incorporating community feedback for decentralization, and directing 70 billion CRO tokens into a Strategic Reserve escrow wallet.
CRO Value Plummets by 8.5% Post-Announcement
Following the announcement, the price of CRO dropped 8.5%, from $0.0812 to $0.0743, reflecting immediate market concerns. The Total Value Locked in Cronos DeFi dropped by $70 million. The decision has sparked reactions within the community, noting potential governance shifts. Critics highlight the centralized voting power, questioning the balance in strategic decision-making.
Reissue Reverses 70B Token Burn from 2021
This proposal exceeds the February 2021 token burn event when 70 billion CRO tokens were removed, increasing CRO value by 70%. Current actions reverse earlier decisions. Experts suggest this reissuance could impact decentralization efforts. Analyst predictions indicate long-term ecosystem growth despite short-term challenges reflected in the current market response.
The decision to reissue 70 billion CRO tokens might have significant impacts on the Cronos ecosystem and the broader cryptocurrency community.
