What Happened: Cryptocurrency Exchange Crypto, com’s native token CRO is up over 70% in the past 24 hours, and its trading volume is up 877%

The price of the cryptocurrency soared after the company’s announcement confirmed a massive token burn ahead of the mainnet launch

Kryptocom said it would destroy 70 billion of its CRO tokens in what has been dubbed the biggest token burn in the history of crypto markets

Why It Matters: The cryptocurrency exchange stated that token burning was an important step in fully decentralizing the network “

“The purpose of these burns is to ensure network security by helping early adopters prepare for the crypto from Jan. March will not give too much advantage to org Chain mainnet, “a spokesman for Cryptocom said Benzinga

59Today, 6 billion CRO tokens are burned, the remaining 104 tokens are locked in a smart contract according to a schedule that is burned monthly

According to the exchange, this will increase the circulating supply of CRO from the current 24% to over 80%

Typically, the goal of token burning is to permanently remove a certain amount of a token from circulation in order to slow inflation / affect the price of a token

“There is no direct correlation between price increase and token burns, but one can induce the existing tokens to become more valuable if the supply is reduced,” said a representative from Cryptocom concluded

What else: In addition to these changes in the tokenomics of CRO, the platform will launch the Kryptoorg Chain Blockchain in the mainnet on 25 March

The blockchain serves as an infrastructure for users to create payment networks, NFTs (non-fungible tokens), and DeFi (decentralized finance) applications

“We believe the world needs a fully decentralized open source chain with high speed and low fees,” Cryptocom said in a blog post

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Source: https://www.benzinga.com/node/19787531