Crypto.com‘s (CRYPTO:CRO) Coin digital currency didn’t get as much attention as high-flying meme coins like Shiba Inu (CRYPTO:SHIB) and Dogecoin (CRYPTO:DOGE)last year, but it was still a top performer among cryptocurrencies in 2021.
Crypto.com Coin, from the crypto exchange of the same name, jumped 852% to $0.55, easily outperforming the largest cryptocurrencies, including Bitcoin (CRYPTO:BTC) and Ethereum (CRYPTO:ETH). Crypto.com Coin was up by almost 2,000% for the year by November, nearly cracking $1 at a peak of $0.96, but a sell-off across the crypto markets at the end of the year damped its annual return. The altcoin (essentially any coin other than Bitcoin) has also continued to slide this year as expectations of rising interest rates are deflating the asset bubble that grew during the pandemic.
But at a current price of about $0.48, is Crypto.com Coin a good candidate to cross the $1 mark in 2022 — a milestone it surely will reach before Shiba Inu, which is the subject of similar speculation? Before we answer that question, let’s take a step back and look at what makes the digital token unique.
What is Crypto.com Coin?
The native coin of the Crypto.com exchange, Crypto.com Coin (CRO) is a versatile cryptocurrency intended for use in payments. It offers a perk that allows businesses to accept the coin but receive payments in stablecoins or fiat currency, eliminating the volatility risk involved in accepting the crypto as payment.
As a coin created by Crypto.com, CRO’s future will most likely be determined by Crypto.com, which is now the ninth-largest cryptocurrency exchange by trading volume. CRO offers users benefits like discounts to trade on Crypto.com, and they can earn 10% interest by staking the coin on the exchange, among other perks, including getting a premium Visa card.
Crypto.com is also in the midst of a marketing blitz that may be unprecedented in the crypto industry. The company, which is based in Hong Kong, bought naming rights to the Los Angeles arena formerly known as the Staples Center, home to the NBA’s Lakers and other pro sports teams, in a $700 million deal that went into effect on Christmas Day and will last for 20 years. That news, announced in Nov. 17, helped propel CRO to its peak on Nov. 24.
More recently, Crypto.com has blanketed airwaves with a new ad campaign featuring movie star Matt Damon, touting Crypto.com with the tagline, “Fortune favors the brave.”
In many ways, the CRO token is essentially a bet on the growth of the Crypto.com exchange.
Will CRO break $1?
Whether Crypto.com Coin breaks $1 this year might depend more on the broader cryptocurrency market than the performance of CRO itself, as cryptocurrencies tend to rise and fall together.
Already this year, heavyweights like Bitcoin and Ethereum have come under significant pressure, with both currencies down by double-digit percentages so far in 2022. Market sentiment toward cryptocurrencies and growth stocks appears to be changing as investors expect monetary policy to tighten this year, with the Federal Reserve forecasting several interest hikes this year.
In other words, 2022 could mark another crypto winter, after the euphoria of the past two years.
However, over a longer time horizon, the prospects for CRO and Crypto.com seem more promising. The marketing campaign looks like a savvy move to gain market share in an industry that has only just started to go mainstream. Many investors still don’t own any crypto, and getting name recognition with the Los Angeles arena rebrand and the Matt Damon campaign will help the company gain a greater share of new cryptocurrency accounts.
At its current price of about $0.48, CRO would need to more than double to crack $1. Given the volatility in cryptocurrency and the likely growth in Crypto.com, the altcoin should eventually get there, even if it doesn’t happen this year.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.
This news is republished from another source. You can check the original article here.