I’ve followed motorsports – of which the crown jewel is Formula One or F1 – off and on for many years. During these pandemic-disrupted years, my curiosity soared, particularly for the recently concluded 2021 season. And what a season it has been for motor racing fans and in particular, Crypto.com Coin (CCC:CRO-USD).
Usually, I don’t pay much attention to sponsorship deals, but CRO is a fortuitously massive beneficiary.
When entities sign sponsorship deals – whether for a specific team or league or stadium-naming rights – there’s always a risk that the underlying product could fail. For instance, baseball’s Los Angeles Angels were a flop, arguably due to front office ineptitude. Frankly, I don’t have high hopes for them in the upcoming 2022 season. Young players, particularly pitchers, take time to develop.
On the other hand, the Angels’ Shohei Ohtani was a revelation. A genuine two-way player the likes baseball fans have not seen since Babe Ruth (or “Bullet Joe” Charles Wilber Rogan if you include the segregated teams), Ohtani delivered on his early hype and then some. Companies who endorsed him specifically are pleased, just like the founding team behind Crypto.com Coin.
In my years watching F1 racing, I don’t think I’ve ever seen so many mainstream media outlets discuss and debate the incidents that occurred on track. Sure, you have coverage of who won and all, just like mainstream media will cover the Indianapolis 500. But the coverage ends shortly after the event. And F1 sees relatively limited fanfare because it’s an international and European-centric sport with currently no American full-time drivers.
But that all changed with the final lap of the final race of a wild and contentious season. Usually, critics deride F1 as a glorified parade lap. Not this time.
Crypto.Com Coin Revels in the Controversy
Throughout the final race, the two title contenders, Max Verstappen and Lewis Hamilton, were evenly matched on points. However, Verstappen had the slight edge as he had won more races than Hamilton, meaning that if an incident took both drivers out, Verstappen would win the championship. But the governing body of the race made it clear that cynical efforts to win the title would be denied, meaning it was winner takes all.
You couldn’t ask for a more dramatic showdown. And Crypto.com Coin, a key sponsor of F1 racing, couldn’t have dreamt up a more lucrative opportunity.
However, for most of the race, it looked like another Hamilton parade lap, who was cruising to what would have been his eighth title. But then, a crash occurred in the waning moments of the race, drawing out the safety car and allowing the field to bunch up.
Now, the controversy is that had safety car rules been followed to the T, there would not have been enough laps to resume racing. However, the racing director decided to modify the rules to allow one last sprint to the checkered flag. The most controversial element is that this modification allowed Verstappen, who was in second place, to pit for fresh tires while forcing Hamilton to stay on old tires to protect his track position.
Long story short, the modified rules gave Verstappen a free pit stop and allowed him to be right up Hamilton’s tailpipe prior to the race restart. Very quickly and dramatically, Verstappen overtook Hamilton and the rest is history.
While I’m not going to get into a motor racing debate, the beauty for Crypto.com Coin is that this incident will be talked about for years. And CRO’s sponsorship will feature in the background during those replays.
But Should You Buy CRO?
Although I’m optimistic about Crypto.com Coin, I’m also realistic. There’s a very good chance that this could be an investment that requires long-term patience. Therefore, I would only consider as a speculative idea a very small portion of your risk-on funds to CRO.
You may have noticed that I’ve presented multiple philosophical arguments about virtual currencies, most of which are not exactly the most optimistically phrased. Folks, I’m being real with you: cryptos could be the greatest thing ever or it could be the most catastrophic bubble known to mankind. If you can deal with that grave uncertainty, maybe Crypto.com Coin is right for you.
My personal take is that if the blockchain ecosystem becomes as transformative as its proponents say it will be, then my money is (quite literally) on Crypto.com Coin thanks to its comprehensive utility and exciting brand power. But let me be clear: only wager on CRO when you’ve done your due diligence.
On the date of publication, Josh Enomoto held a LONG position in CRO. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.