CRO (Crypto.com Coin) Price Surges 40% as the Cronos Network Prepares to Reissue 70B CRO Tokens

The cryptocurrency market is known for its volatility, but even with the regular ups and downs, some tokens truly stand out when it comes to making big moves.

The cryptocurrency market is known for its volatility, but even with the regular ups and downs, some tokens truly stand out when it comes to making big moves. One of those tokens is $CRO, the native crypto of Crypto.com’s Cronos blockchain, which just so happens to hit the news quite a bit. Just over the past 24 hours, $CRO has soared by 40% to now sit at 10 cents with a market cap around $2.6 billion. This is undoubtedly related to a new token issuance proposal that is making its way around the ears of both investors and the crypto community at large. The proposal states that Cronos is reissuing 70 billion $CRO tokens, which had previously been burned back in February 2021. It’s all part of a larger scheme by the company to build a strategic reserve, which is something that’s gaining a lot of traction as a concept in the crypto market.

The Token Issuance Proposal: A Key Driver for the $CRO Surge

Recent reports have shed light on the remarkable surge in Crypto.com’s native token, CRO (Crypto.com Coin), which has caught the attention of investors. Over the past 24 hours alone, the token has experienced a noteworthy price increase of nearly 40%.

As reported by Followin, the new token issuance proposal from Crypto.com has been a significant factor driving the rally in CRO. The proposal, which is currently being discussed among investors and the crypto community, details Crypto.com’s plan to reissue 70 billion CRO tokens. These tokens were originally burned back in February 2021 as part of a token reduction strategy.

Earlier this year, Crypto.com announced its intention to add 70 billion CRO tokens to its strategic reserve. They will be issued in a single tranche and subject to a 10-year lock-up period. The release of these tokens will occur in a linear fashion over the first 10 months, with the first monthly unlock commencing one month after their issuance. Afterward, the remaining tranches will be released at six-month intervals.

For many investors, a strategic reserve is very appealing indeed. When you stake $CRO, part of what you are doing is locking up some of its total supply for a fairly long time. By doing this, you are giving a reliable signal that you are in it for the long haul, that you are not in some sort of get-rich-quick scheme where you unload as soon as the thing starts taking off.

About a week ago, the company announced that it was going to start unlocking some of the newly issued $CRO that you might have staked back in 2020 or 2021. Still with me? Good. Because there is hanging on this announcement the question of what is going to become of the market for $CRO now that it is no longer a staking yield, but rather much more like a cash settlement to a futures contract.

The Growing Popularity of Strategic Reserves in the Crypto Market

Strategic reserves is a not totally novel idea in the crypto world, but it’s gaining traction. In what might be the first move of its kind by a cryptocurrency service provider, Crypto.com has gone and locked up in reserve some $10 billion worth of its own native cryptocurrency, the CRO (Crypto.com Coin). When you buy something using CRO, the company’s argument goes, you are helping to ensure that CRO has a long-term future. Because locking up $10 billion in reserves is probably not something you can pull off unless you’re a company with a vault full of cryptocurrencies.

There are many possible advantages to having strategic reserves. For one thing, they assure us long-term holders that a substantial part of the token supply is safe and sound, not being traded this way or that, and that’s good for market stability. It’s much better, for example, if large holders (a.k.a. “whales”) can’t suddenly flood the market with a lot of sell orders. And it’s also much better if they can somehow manage their token supply more predictably. That is, these reserves could help avoid any sort of unpredictable market flow from the token’s supply.

This recent development gives $CRO holders reason to feel optimistic, as it indicates that Crypto.com is adopting a proactive and sensible approach to its tokenomics. Furthermore, the reintroduction of the burned tokens, through the strategic reserve, could create a short-term sense of scarcity, which is often a “powder keg” for triggering price increases. In summary, there are two reasons to see this as a potentially positive development.

What Does the Future Hold for $CRO?

Undoubtedly, the immediate effect of the token issuance proposal on $CRO’s price is good, yet it might not be all that it seems. As good as it looks, can we really expect this price to hold