After the Binance's decision to launch its own chain many Crypto Exchanges like Huobi, Kucoin, Okes etc. came up with their own chains. In a big move, Crypto.com is not only launching its chain Crypto.org but in an attempt to fully decentralize it, it has decided to burn 70 billion CRO.
Burning 70 billion tokens is probably the biggest ever burn event to date in the crypto history. But it should also be noted that it's being burnt from the total supply and has no impact on the circulating supply. Of course, its total diluted market cap will come drastically down with this move.
After the merging of MCO into CRO, CRO had became the single token for Crypto.com Exchange and all its other products. Now CRO will become a native token for its chain Crypto.org.
But probably some were already privy to this news as I was observing CRO prices moving upwards for last 2-3 days. A week back, CRO price was somewhere between 6 & 8 cents which suddenly moved to 14 cents by yesterday. Today just after this official announcement, it started skyrocketing and reached over 24 cents.
As this news spread, I expect it to rise even further.
Can CRO do the BNB?
Possibly, not that fast but CRO has re-entered in the top-20 coin list and it's very much possible to regain its top-10 ranking in the coming days. The Mainnet launching date is only about a month away. It has been scheduled for March 25th launch.
It will be interesting to see how they market and position themselves.
They are trying to position themselves as world’s best infrastructure for Payments, DeFi and NFTs. With its low transaction fee, high speed, wide industry partnerships and aggressive marketing strategies, it's not impossible to realize that goal.
With this CRO burn event, it's now became clear that there can't be unlimited inflation to support their very lucrative reward oriented marketing campaigns. Probably they had already stopped working as much as to their favour as they were in the beginning. So that phase is already over now.
However, it would be interesting to see how much block rewards this new chain will offer to CRO stakers as it's a dPoS chain. After this burn, 5 billion CRO will be left to use for block rewards for validators and delegators. The rise in CRO price will definitely make delegation returns interesting for the present hodlers.
Tbh, I'm neither buying nor selling my holdings of CRO. But I'm keenly watching what they are trying to do.
- What's your take on CRO?