Cronos faces Community Backlash Over Token Reissue Proposal
Cronos (CRO) is experiencing a downturn as the community debates a proposal to reverse a 2021 token burn. The plan involves reissuing 70 billion tokens, increasing the total supply to 100 billion. This move aims to fund network growth and ETFs. Though, users fear it will cause dilution.
Despite this, decentralized exchange activity on Cronos has surged. VVS Finance, the largest DEX on Cronos, saw a 140% increase in weekly volume, reaching $123.2 million. This growth has boosted the VVS token’s value. The reissued tokens will go to a strategic reserve, locked for five years. The goal is to support the network and U.S. crypto dominance. Yet, many oppose it, citing potential future dilution.
Currently, 50.92% support the proposal, wiht voting ending on March 17. The quorum is at 23.50%,short of the required 33.40%. The community is divided, with 48.56% against the plan. The proposal’s fate remains uncertain.
Technically, CRO hit a low of $0.0700 this month.Analysts note a rebound as the falling wedge pattern converges. If CRO surpasses the 50-day moving average at $0.1, it could climb to $0.1400. The Relative Strength Index and MACD indicator show upward momentum. A rise above $0.1 could signal more gains.
- Weekly DEX volume jumped 140% to $123.2 million.
- Most volume comes from VVS Finance, handling $92 million in the past week.
- Price gains are possible if it breaks $0.1.
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