Hold Off on Crypto.com Coin Despite Its Brilliant Marketing Efforts

Crypto.com Coin (CCC:CRO-USD) again rocketed upward last Friday, proving November was a pivotal time for the cryptocurrency. Last month was a breakout period for CRO after it remained flat for essentially the entire year. Well, relatively flat in the fast-moving world of crypto, that is. It did triple in price over a period of a week in February. 

A concept image of the Crypto.com Coin token, CRO.

Source: Stanslavs / Shutterstock.com

As impressive as that jump was, it didn’t propel Crypto.com to national attention. However, the company did achieve such prominence after a marketing campaign and branding effort thrust it into the spotlight. 

That news, along with other, more recent announcements makes it worth understanding right now. 

A Big November for Crypto.com Coin

Crypto.com Coin is now a much more widely known name following its rebranding announcement with the soon-to-be-former Staples Center. That propelled its price significantly higher.

But even before that mid-November announcement, it was on the rise. In early November, Crypto.com Coin announced it was launching on Coinbase (NASDAQ:COIN). That began its latest round of phenomenal gains. Prices increased from approximately 21 cents to nearly 40 cents on that news alone. 

Users want to buy and sell cryptocurrencies more easily. That leads to increased liquidity, thus making crypto less risky and increasing demand. 

So, it’s no surprise that CRO moved upward on the Coinbase listing news. Further, Crypto.com had announced a $100 million marketing campaign in the days prior to the Coinbase listing. 

For those interested, this video is a great summary of those efforts and campaigns. Crypto.com is clearly going on a spending spree intended to bring it notoriety. It seems to be working, and as a result its price continues to move rapidly. And no news has been more significant than the Staples Center rebranding news. 

Crypto.com Arena 

Fans of the National Basketball Association (NBA) are likely aware of the Staples Center. It hosts the NBA’s Lakers and Clippers franchises as well as the National Hockey League’s (NHL) Kings and the Women’s National Basketball Association’s (WNBA) Sparks. 

The arena has a rich legacy, most recently serving as the home court of the late NBA legend Kobe Bryant. The arena hosted many memorable performances, and his are especially synonymous with the Staples Center.

But going forward, it will be known as Crypto.com Arena beginning Dec. 25. That has catalyzed a surge of interest in the cryptocurrency exchange and online wallet platform. 

That marketing effort has inarguably been a success. Millions of eyes will suddenly become more familiar with the Crypto.com name. That in turn should legitimize both the company and cryptocurrency more broadly. But that isn’t the only thing potential investors should be aware of. 

Crypto.Com Coin Is Technically Sound, But…

It’s safe to say that security concerns are among the reasons investors are hesitant to establish positions in crypto. In the case of CRO, those concerns are now less worrisome. That’s because it recently achieved Service Organization Control (SOC) 2 compliance following an audit by Deloitte

The SOC 2 certification is commonly applied across the traditional finance industry. Given that Crypto.com has passed that audit, more traditional investors ought to trickle in. That idea is a good explanation of why the coin has again surged upward. It has now passed the 90 cent threshold. 

Crypto.com is becoming more attractive while Binance (CCC:BNB-USD) struggles after centralizing due to regulatory pressure. The former’s recent movement has led some to speculate that it will take up some of the mantle Binance has lost. That’s pure speculation, but in these still-early days of crypto, the argument may have merit. 

In my opinion, it makes sense to play Crypto.com lightly right now. Too often, eager crypto investors jump into coins like CRO only after a spate of announcements sends them skyward. My concern is that CRO looks to be in that position now. I’d hold off and wait for a few weeks while things settle.

On the date of publication, Alex Sirois 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.

Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.

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