CRO cryptocurrency from Crypto.com
You know a company means business when they are willing to spend $10 Million just to get the domain name that they want. As was the case for this company https://cryptonews.com/news/crypto-com-domain-is-officially-sold-for-millions-2193.htm
If you’ve traded cryptocurrencies on a decentralized exchange before using the ethereum blockchain (such as Uniswap, 1Inch, or SushiSwap) you may have noticed gas fees that are so high, you could be pouring more into completing a transaction than you are into the crypto you are purchasing unless you’re spending many hundreds or even thousands of dollars.
Several solutions to the problem of ethereum blockchain gas have been presented and one of the more popular ones is utilizing other blockchains that have less fees associated with trades and transactions. We saw this with the massive spike in popularity of Binance Smart Chain and Pancake swap with the BNB token reaching all time highs as people moved from Ethereum to Binance to avoid fees in the hundreds of dollars. BNB, which was trading around the $30 range earlier just this year, reached a high of over $300 representing a 10X upside from their pre-smartchain hype pricing. A similar opportunity now presents itself with Crypto.com token CRO, currently valued at around $0.25 and a market cap of almost $6 billion
But what is CRO?
Crypto.com was founded in 2016 and is one of the first companies to offer a cryptocurrency funded debit card to US Residents. They are planning to enter the smarchain space to gain some of the users that have been fleeing ethereum due to high fees and the mainnet is set to launch on March 25th 2021 https://blog.crypto.com/cro-mainnet-launching-on-march-25th-2021-as-crypto-org-chain/
The company acquired the crypto.com domain name early on which helps get many new people entering the crypto space because it’s domain is literally CRYPTO (dot) com.
The team is not anonymous and the project is matured and old by most crypto project standards. Meaning it is at a very low risk of a hack or rugpull that has plagued newer projects in the space. This is particularly the case with the ease in which people could deploy ERC-20 tokens on the ethereum blockchain over the past year.
The Team at Crypto.com are currently implementing a token burn, a process in which the creators or network destroy tokens, reducing supply, so that the price of the remaining tokens goes up. You can read more about this here https://finance.yahoo.com/news/why-crypto-com-coin-skyrocketed-001950286.html
But this started on February 23 and has been very successful up until now (if you take a look at the historical price chart on coingecko or coinmarketcap).
Once the mainnet launches we can expect developers to start building on top of the blockchain which is usable for another really popular and trending narrative right now NFT’s
If you are planning on investing in CRO you should consider both the bull and bear cases.
The Bullish case
- CRO mainnet has yet to launch and the blockchain will bring with it a lot of activity on the network so the token has a lot of positive upside (just like BNB with Binance Smart Chain)
- As a project with smaller market cap than Binance they are not as likely to be targeted by regulatory scrutiny from the SEC for their smartchain or their token burns, something that has been a concern among the binance community
The Bearish Case
- People already know that other blockchains are a trending narrative that performs well as we’ve seen by other crypto tokens mooning on similar news (see virtual baccons report on this for examples at https://vm.tiktok.com/ZMeSodPBq/) This means that many people are already buying CRO on the rumor of the mainnet launch and may sell on the news once March 25th hits, so we could already be up near the top and will only fall down further.
- The Binance community has been concerned of SEC regulation since their token burn because critics thought this could be considered treatment of their token as a security. Similar to the Ripple XRP Lawsuit this could have negative impact for Binance and if so Crypto.com would also share this vulnerability.