The biggest token burn in the history of cryptocurrency. (9 billion dollars worth)

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The biggest token burn in the history of cryptocurrency. (9 billion dollars worth)

The biggest token burn in the history of cryptocurrency. (9 billion dollars worth)

On 02/22/2021 Crypto.com proceeded to the burn more than 70 billion CRO token.

https://preview.redd.it/4xijkyg6n5q61.png?width=625&format=png&auto=webp&s=05280de40cde705800db5f2b5839e137789b5802

At the time the CRO token was worth $0.13

of course the market would not have been able to handle such a volume without collapsing but in a liquid market that would be more than 9 billion dollars that were destroyed at the push of a button.

The HOW

To effectively burn the token, they transferred them to a ETH address that does not have a known private key associated with it.

this one:

https://etherscan.io/address/0x000000000000000000000000000000000000dead

At 6 am crypto.com signed with their multisig wallets 4 transactions destroying 60 billion token (10 billion will be destroyed once they get unlocked from a smart contract)

https://etherscan.io/tx/0x4dcecdeadc2dbefe56cbdb9871e68bae6f908a8ad00ac6c2ba05ef71b0b79e7a

(Funny coincidence that the txid has dead in it too)

https://preview.redd.it/8fd96zjyn4q61.png?width=1622&format=png&auto=webp&s=643a7adc7552305371e14ac262ab0d9c76e5d5d6

Of course this had a major repercussion on the price because even if those coins were not deemed to be in circulation yet, the fully diluted coin supply of CRO was still reduced from 100 billion to 30 billion. In less than 6 hours the coin's value more than doubled from $0.13 to $0.27

CRO price on Frebuary 22nd

The WHY

The reason why Crypto.com decided to burn those token beside the obvious one, (improve the value of their token) is Decentralization. Crypto.com was getting ready to release its main net where the CRO token would live on their own blockchain instead as a ERC20 token.

Crypto.com heard the concern that with them having so much unreleased coins in their possession it would greatly affect the trust in the decentralization in their delegated proof of stake blockchain.

NOW

And it seems their bet worked, they launched their main net on March 25th.

It is working well with:

  • Above 50% apy for staking right now. It is expected to settle around 20%.
  • low fee of only 0.0001 CRO by transactions
  • Transaction settled in less than 10 seconds
  • Hardware wallet support for hosting a validator node or delegate your stacking (with beta software)

And above all for a brand new blockchain they manage to achieve a very good level of decentralization where they control only 7 validators of the maximum of 100 validators receiving proof of stake rewards.

https://crypto.org/explorer/validators

If you want to see a pile of digital cash burning I invite you to look at the etherscan page 0x000000000000000000000000000000000000dead where more than 13 billions of $ worth of CRO are sitting now out of reach of everyone.

submitted by /u/tookdrums
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