Rising for no reason? CRO token has the highest inflation rate, yet its price has surged nearly fivefold!

Crypto.com announced on the 3rd of this month that they will launch an MCO token swap program, merging the current issued MCO and CRO tokens into a single CRO token. Meanwhile, the cryptocurrency research firm Coin Metrics released its second-quarter circulation report on the 11th, with CRO ranking first with a 145% inflation rate.

The crypto debit card "MCO Visa Card" introduced by Crypto.com has been well received by users. According to the announcement made by MCO officials on the 3rd, in order to prepare for the upcoming mainnet launch and maximize on-chain functions, they have decided to retain only the CRO token. The MCO/CRO token swap program will end on November 2nd, Taiwan time, after which the MCO token will no longer have any functionality or value.

CRO Inflation Rate Tops the Chart

Coin Metrics' circulation report shows that as of the second quarter of this year, the net value added to the cryptocurrency market was $1.36 billion, with the following assets leading the pack:

• CRO token ($392 million)
• Ripple ($268 million)
• Ethereum ($256 million)
• Bitcoin ($245 million)

Regarding last year's circulation, the cryptocurrency assets with the highest annual inflation rates were:

• Crypto.com Coin (145%)
• Bitcoin SV (26%)
• Decred (19%)

Meanwhile, the assets with the lowest annual inflation rates during the same period were:

• Bitcoin (2.6%)
• Cardano (1.6%)
• Dogecoin (-1.9%)
• Huobi Token (-23%)

The report highlights that in the second quarter, the circulation of CRO increased by 5.9 billion tokens, a significant increase compared to the previous three quarters where the total circulation only grew by 2.4 billion tokens. Additionally, the value of CRO tokens transferred out of team addresses was around $9.4 million, lower than the $32 million in the previous quarter.

Coin Metrics emphasizes that assets being moved out of foundation or team-controlled addresses do not necessarily mean the assets have been sold. There could be various reasons for this, including operational costs, strategic partnerships, strategic investments, distribution to team members, or community incentive programs, among others.

Crypto.com Users Protest Heavily

Earlier reports announced that Crypto.com would operate in the future with a single token system using CRO, replacing the previous MCO distinction for Visa card levels, which would increase users' staking costs by nearly five times based on the coin price at the time of the announcement.

The sudden change in mechanism by Crypto.com has left many users dissatisfied, with the sharp increase in staking costs becoming the trigger for community outrage. As a result, the official platform promptly updated the staking mechanism the next day, reducing the cost to one-fifth.

According to CoinMarketCap, CRO will issue 100 billion tokens and has already issued 18.8 billion tokens to date. Despite the report showing a significant increase in its issuance, the price has risen nearly fivefold this year, once again revealing the characteristic of cryptocurrencies with weak fundamentals: rising and falling without much reason.