I will start with the spoiler alert so that I don’t lose readers with my arguments. The take-away is simple even if it may get wonky along the way, so stay with me. Crypto.com Coin (CCC:CRO-USD) serves a purpose and that’s to support the Crypto.com network. The company has a future, so CRO-USD is, theoretically, a viable investment. It also has a special mission and that’s to tie merchants to crypto users.
It is an important link in the fintech chain.
Now, with that out of the way, let’s take a closer look at the world of cryptocurrency before diving deeper into what makes Crypto.com worth a look.
The level of skepticism around crypto is still too high, so it’s important we establish a few facts. I respect that a large percentage of readers doubt the crypto sphere. But, they should also respect the results that the space has delivered. I’ve been a skeptic of many concepts, but I always adjust my opinion when the facts change.
We call that evolution, which leads to progress.
It is human nature to be apprehensive when facing new concepts like crypto coins. I’m sure cash at one point was strange to those who were dealing with hard asset tenders. Then, overtime, it became the norm. The pandemic forced us to consider that we may at one point need to divest from paper transactions. What’s going on in the crypto world right now is the transition phase to that.
Crypto Coin Serves an Important Function
These coins may not be the ones that we will actually use, but they lay down the base case. In fact, we should stop calling them cryptocurrencies because they are not so. Ethereum (CCC:ETH-USD), for example, does not need to be a currency in order to exist. It has an important job, which is to support the Ethereum network.
Similarly Crypto coin does the same for the Crypto.com chain. The first important distinction when investing in crypto is learning the type of asset involved. CRO is not a novelty coin because it actually supports the functionality of a network. That’s why Crypto.com goes through great lengths to promote its uses. They also reward holders handsomely with high dividend fixed income.
They say the “proof is in the pudding” and for CRO-USD owners they have a lot of it. Those who invested in it at 25 cents enjoyed a 290% return by November. Even after giving back half of that, they are still up 100% on their investment. The extra reward from Crypto.com staking is icing on the cake. The S&P 500 is barely up 24%, when CRO is up more than 700% this year. The small caps, which include a basket of 2,000 stocks, are barely hanging on to the flat line.
The Critics Are Bad at Math
Those poking fun at it are missing out on tremendous returns. The crypto investment thesis has a lot of critics, and sadly some are high profile names. Their emphatic opposition makes it easy for the public to also shut them out.
When an expert claims that Bitcoin is a bad holder of value, I contend that they are bad at math. If you bought Bitcoin at the bottom of the 2018 Christmas market crash, you are up more than 1,500%. This is 15 times better than the S&P 500. Not even the mighty Tesla (NASDAQ:TSLA) can match those results.
Clearly, crypto can hold value, and better than equities. As for the “fake” argument, I contend that everything in the stock market is fake. Even expensive art pieces are “fake,” because they are all made by a person. The value in gold is only there because we believe it is. Gold does not provide an expensive service otherwise.
‘Fake’ Is OK
This may sound ridiculous, but it is to prove a point. Crypto coins are byproducts of human engineering, but that doesn’t make them worthless. The laws of supply and demand easily explain the price. Same as gold, crypto coins are in demand and the quantities are finite. The rarer they get, the more valuable they become for as long as people love them.
I don’t have to like the CRO coin, and it does not serve me directly. However, I am eagerly willing to invest in it for profit. I see an opportunity where Crypto.com is an up-and-coming company with a promising future. Its CRO native token coin is likely to grow with its success. They have solicited the services of high-profile celebrities, so they will likely become a household name.
Investing in CRO-USD is definitely speculative for the time being. Crypto in general is still a fringe investment for as long as they are not mainstream. I actually hope that the skepticism lingers a lot longer, because it widens my early bird window of opportunity. Those who wait too long will have a very steep ramp to climb later.
There Are No Perfect Levels
We can’t assume that central banks will stay afloat forever. In fact, their recent actions have become extreme. They are making some bold moves to manage bad global politics. The U.S. Federal Reserve is in the process of unwinding its quantitative easing. It tried that in 2018 and failed and had to restart QE again. That was almost 3 years to the day.
CRO-USD just corrected almost 50% from its recent highs. That is normal price action and is a logical place to start an investment. The old school idea to accumulate over time works here too. CRO is next on my list since currently I am in Solana (CCC:SOL-USD).
On the date of publication, Nicolas Chahine did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Nicolas Chahine is the managing director of SellSpreads.com.