On the surface, it doesn’t seem like the clock favors Crypto.com Coin (CCC:CRO-USD). While the token has performed brilliantly on a year-to-date basis, since hitting an all-time high on Nov. 24, the narrative doesn’t look too hot.
Further, with cryptocurrency benchmark Bitcoin (CCC:BTC-USD) presently struggling underneath the critical $50,000 level, CRO seems destined to end 2021 on a rather flat note.
I can also speak from personal experience. After enjoying a quick profit (on paper) following my acquisition, I’m now deep in the red. Sure, it’s annoying but at the same time, I expected something like this to happen. We’re talking cryptos here.
For me, the sector is reminiscent of the thin plastic bag that’s floating in the wind as you’re driving by on the highway. You don’t think it’s going to hit you but then sometimes, these bags seemingly become conscious, deliberately moving to your car to momentarily distract.
That’s how I view my present loss (also on paper) on Crypto.com Coin. Annoying, yes, but in the long run, it won’t mean much. Perhaps, I might look back on this incident and regret that I didn’t buy more.
To be clear, I’m not advocating buying into the red ink for Crypto.com Coin. Usually, when tradable assets lose double digits over a short time period, there’s a reason for it. Rarely is that reason good. Further, I don’t have evidence that traders who dumped out of their CRO holdings are acting irrationally.
I’d probably do the same if the shoe were on the other foot. In fact, I know I’d do the same because I did so with BTC. I have zero regrets about that and I don’t expect early CRO backers to have any either.
Almost Perfect Timing Bolsters Crypto.com Coin
Still, I’m confident that at some point in the future, Crypto.com Coin will regain its mojo. Therefore, I’d use this time now — while cryptos are getting their butts handed to them — to perform some due diligence on the digital assets that can rise above the rest.
For me, one of my top ideas is CRO, primarily because of the combined power of community and branding. You see, with over 15,500 cryptos available for trading, the likelihood that any one of them — all things being equal — would be “the one” is terribly low.
However, not all cryptos are equal. Heck, even coins associated with fundamentally superior blockchains don’t always demonstrate that viability in the open market. Why? In my opinion, it comes down to community. And one of the best ways to build community is through branding.
Here, the team behind Crypto.com Coin made an aggressive but smart move in its Formula 1 sponsorship deal. The premiere racing league that travels around the world, unlike domestically focused Indycar and NASCAR, F1 represents one of the most lucrative marketing opportunities. Therefore, to see Crypto.com’s logo plastered on various sections of a race course is about as high profile as you can get.
More importantly, this year’s F1 season — which ended with some controversy — has been nothing short of speculator. And that is pure luck for Crypto.com Coin. Usually, F1 is one of the most boring sports to watch because one man and one team — Lewis Hamilton of Mercedes AMG Petronas F1 — seems to win uncontested every year.
This year, it came down to the wire with Hamilton and title contender Max Verstappen level on points — something that hasn’t happened in decades. The Red Bull team’s victory is under appeal.
Perhaps More Excitement to Come
Some might counter that this is just one season, and we could be due for more Lewis Hamilton parade laps in 2022 and beyond. Or, at best, a competition between the Mercedes drivers, which would be just as boring for non-Mercedes fans.
However, a new formula will be in place for next year, with radical changes in aerodynamics allowing the cars to race closer together. In a way, the drivers will be on equal footing, potentially making 2022 one of the most exciting seasons in F1’s history. This too could possibly be a big catalyst for Crypto.com Coin.
Then there’s this other little sports league called the National Basketball Association which should also help the cause. As you’ve heard, Staples Center will become Crypto.com Arena in a massive naming rights deal. This just serves to bring CRO and its ecosystem to the widest possible audience.
And again, you know the power of community when it comes to virtual currencies. That’s why I’m not worried about my CRO losses and neither should you.
On the date of publication, Josh Enomoto held a LONG position in CRO and BTC. 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.