Based on its performance in recent days, is the Crypto.com Coin (CCC:CRO-USD) super-rally cooling down? Soaring from around 21 cents per coin at the start of November to as much as 97 cents per coin on Nov. 24, in the past week it’s started to drift lower. As of this writing, it’s trading for around 68 cents per coin.
But while it is down around 30% from its all-time high, its days of making epic moves higher may not be over. Much like the frenzy surrounding other speculative cryptos this year, like Shiba Inu (CCC:SHIB-USD), it may last several rounds before it truly reaches its peak.
Why? For one, awareness of Crypto.com has only just started to take off. A forthcoming sponsorship deal will further extend its familiarity with the general public. The increased attention for the coin’s titular cryptocurrency exchange platform will likely indirectly benefit the price of CRO-USD. Second, it may be more than enough “get rich” potential to convince traders to continue stampeding into it.
Although it’s one of the top 15 most valuable cryptos by market capitalization, it may still have substantial runway ahead of it. Tread carefully of course, as it’s not guaranteed the frenzy will continue. Nevertheless, if a crypto gamble is what you’re in the market for, today this name may be just the ticket.
Crypto.com Coin at a Glance
With over 10 million users, and operating in over 90 countries, Crypto.com has become a major financial services company in the blockchain economy. Through its platform, you can buy and sell cryptocurrencies. Cryptos offered include established names like Bitcoin (CCC:BTC-USD) and Ethereum (CCC:ETH-USD), all the way down to more obscure names. The company also sells non-fungible tokens (NFTs), and also offers crypto-backed credit cards.
Through its platform, you can even engage in DeFi (decentralized finance) transactions. For instance, yield farming. Okay, so Crypto.com is a bit like Coinbase (NASDAQ:COIN), Binance, and most other major crypto exchanges.
Then what is so special about Crypto.com Coin, and what’s the appeal of holding it?
Beyond holding it just as an investment, owning this platform’s native token comes with scores of incentives/rewards. For example, depending on how much you stake into CRO-USD, you can obtain generous cashback rewards if you use its credit card. Staking $40,000 into the coin will get you 5% cash back and staking $400,000 can net you 8% cash back on all purchases.
But it’s not the perks of holding CRO-USD that have crypto aficionados talking about it today. Instead, it’s the incredible run it has been on in recent weeks. A rally kicked off primarily by news of it signing a 20-year, $700 million naming rights deal for the Los Angeles stadium that’s presently known as the Staples Center.
Why CRO May Have Room to Hit New Highs in The Near-Term
It may seem like investors have already priced-in the benefits of this deal, given Crypto.com Coin is up more than threefold in the past month. Even so, it may not have yet peaked in price.
Again, this is due to two factors: rising awareness, plus its “get rich” appeal. If you follow the crypto market, you may believe everybody and their mother has heard of Crypto.com. However, the general public may be far less aware of it.
At least, they may have been less aware before news of this stadium deal. Subsequent marketing efforts could help make it become like Coinbase, which is as much of a household name as Robinhood (NASDAQ:HOOD). This coin’s association with a brand growing in popularity could help it see a further price surge.
Regarding its “get rich” appeal, Crypto.com Coin, with a roughly $18 billion market capitalization, may appear like it’s all out of its “to the moon” potential. But then again, it may have a good chance of going on another 3x or 4x rally. It has a low per-unit price, which could lead investors to believe it has greater upside potential than more expensive cryptos.
Also, as my InvestorPlace colleague Mark Hake recently argued, if Binance Coin (CCC:BNB-USD), associated with the Binance exchange, can sport around a $100 billion market capitalization, why couldn’t CRO-USD?
The Verdict: Be Careful, But Don’t Assume That It’s Topped Out Just Yet
The ingredients may be there for the CRO-USD rally to carry on. But that doesn’t mean it’s a slam dunk, by any means. After surging on the stadium sponsorship news, too many holders of it may take profits, pushing it lower. The frenzy around it now may not last as long as the frenzy that sent Shiba Inu “to the moon.”
Tread carefully, but don’t assume right off the bat that Crypto.com Coin has peaked in price.
On the date of publication, Thomas Niel held long positions in Bitcoin and Ethereum. He did not have (either directly or indirectly) any positions in any other securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Thomas Niel, contributor for InvestorPlace.com, has been writing single-stock analysis for web-based publications since 2016.