Crypto.com is stirring up the community with its controversial proposal to “unburn” 70 billion CRO tokens that were removed from circulation back in 2021. However, the plan is facing significant resistance from CRO holders, raising concerns about a potential drop in token prices.
The cryptocurrency world is no stranger to heated debates sparked by bold proposals, reminiscent of the divides seen with Bitcoin and Bitcoin Cash. While the evolution of technology has lessened the risk of hard forks, disagreements still persist. This week, Crypto.com finds itself in the spotlight as it suggests a radical plan to reinstate 70 billion CRO, previously burned, back into circulation.
During what has been dubbed the “Golden Age” of CRO, its value skyrocketed by over 500%, reaching nearly $1. Recently, however, the token has been in decline as competition grows and investors chase after the next promising meme coin on platforms like Solana.
Crypto.com’s “Unburning” Strategy
In February 2021, Crypto.com took a significant step by burning 70 billion CRO tokens, which reduced the total supply from 100 billion to just 30 billion. This move was ahead of similar supply reduction strategies implemented by Ethereum, BNB Chain, and Tron, all working to decrease their circulating supplies over time.
The rationale behind this action was to foster scarcity, mirroring the economic model of Bitcoin. With fewer CRO tokens available and steady demand, prices surged from approximately $0.06 to over $0.95 by November 2021. This spike coincided with extensive marketing campaigns, including Crypto.com securing naming rights to a prominent stadium, and was further bolstered by the DeFi boom that saw CRO's market capitalization rise above $24 billion. Unfortunately, the downturn in crypto prices and the waning of DeFi enthusiasm caused CRO to crash in 2022.
To address this decline and explore new opportunities for growth, Crypto.com introduced the SIMD-0036 proposal on March 3, 2025. This plan aims to “reverse” the decision made in 2021, by creating a “Cronos Strategic Reserve” that will allow 70 billion CRO to be reissued over the next ten years, effectively restoring the original supply.
Tokens will be distributed gradually, mainly rewarding validators who secure and confirm transactions on the mainnet. Additionally, there is a proposal for a $5 billion fund to support AI development, stimulate ecosystem growth, and pursue spot CRO ETFs.
Community Response and Concerns Over CRO Pricing
While Crypto.com defends its proposal as a tactical reallocation rather than a new issuance of tokens, the community is not on board, leading to notable pushback. Early data from Mintscan indicates that nearly 60% of CRO holders may support SIMD-0036, with voting open until March 17. If these trends remain consistent, the proposal stands a good chance of passing.
However, many users on social media are labeling the initiative as “dodgy,” arguing that it undermines the scarcity that previously propelled CRO’s price to $1 in 2021. The unrest among the community is reflected in CRO’s fluctuating value.
Following a brief increase to $0.10 on March 3, driven by President Donald Trump’s announcement regarding crypto reserves, CRO has since dropped back down. Currently, it’s trading at approximately $0.072, and if this trend persists, the token could potentially dip below $0.068, hitting multi-year lows as part of a bearish trend.
At present, bearish sentiment has erased the gains made in Q4 of 2024, pushing prices to their lowest points in 2025. If resistance is encountered on March 17, it might stabilize CRO and possibly lead to a rebound toward February highs. Conversely, if the proposal goes ahead, it could trigger a significant sell-off as holders react to fears of dilution.
