The future will be token-ized: that’s the hypothesis which any investor in Crypto.com Coin (CCC:CRO-USD) will need to embrace if they’re expecting to hold Crypto.com Coin with confidence and conviction.
Being confident right now is easier said than done, in the wake of a massive cryptocurrency correction. Token prices are down, though contrarian traders can view this as an opportunity rather than a problem.
Crypto.com Coin is no exception, as it recently fell from its peak price. Still, it remains one of the top 20 most valuable cryptos by market capitalization, so there’s no need to give up hope.
Besides, an investment in CRO is based on an enduring belief that the cryptocurrency-payments space can and should be disrupted. And as we’ll see, a tie-in with a financial giant should help the token-ization revolution gain traction in the 2020s.
Analyzing the Crypto.com Coin Price
Before we join a full-on revolution, however, let’s back up for a moment and conduct a brief technical analysis. Whether you’re in the green or bleeding red with Crypto.com Coin, depends on when you took a position.
For instance, if you bought the coin at the beginning of 2021 at 6 cents, then you’re doing just fine. Heck, you should be up by more than 800% by now. On the other hand, if you bought CRO at 95 cents in late November, then your timing was less than perfect.
The recent crash in the broader cryptocurrency market prevented Crypto.com Coin from reaching the key $1 level, at least for the time being.
That’s how it goes in the volatile world of digital-asset trading. With this in mind, it’s important to maintain small position sizes at all times.
As of Dec. 10, CRO was trading at a highly affordable 56 cents. So, will you dare to buy the dip and HODL (hold on for dear life)?
The answer to that question depends on whether you believe not just in Crypto.com Coin, but in the project behind that token.
So, let’s start with the basics. CRO is the native token of the Crypto.com Chain, which was created to build a network of crypto projects and to develop merchants’ ability to accept cryptocurrency as a form of payment.
At the crux of this business model is Crypto.com Pay. This is a mobile payment service that allows its users to pay in and/or receive cryptocurrency anywhere, anytime for free.
Well, let’s define exactly what “for free” means. Apparently, the users will pay zero processing fees for settlements in cryptocurrency, “or save up to 80% on fees versus typical payment processors.”
The project’s white paper identifies the typical payment-processor fees as 1% to 3%. So, maybe Crypto.com Pay is truly free to use or maybe it’s not, but it’s certainly reduced-cost.
A Big-Money Partner
The aforementioned white paper also claims “Support of Fiat Institutions” as one of Crypto.com’s advantages. Whether the word “Institutions” really ought to be plural, is debatable.
The point is well taken, however, as the project does have at least one gigantic financial institution on its side. As it turns out, Crypto.com is working with Visa (NYSE:V) on cryptocurrency-linked payment cards.
Apparently, the Crypto.com Visa card is “The only card you need.” Whether that’s true or not, I’ll let you decide. “Enjoy up to 8% back on all spending with your sleek, pure metal card.
No annual fees. Top-up with fiat or crypto,” is the pitch. It’s an enticing list of benefits, I’ll admit.
Moreover, the cardholders can spend and withdraw the fiat equivalent of their cryptocurrency online or offline at over 50 millions of Visa-approved merchants worldwide.
It’s hard to deny that the Visa partnership adds value and credibility to the Crypto.com project. Don’t get me wrong – the token-ization revolution will happen with or without traditional financial institutions’ support.
Still, it’s evident that the movement is picking up steam. With that in mind, a small stake in CRO could provide substantial upside, along with exposure to a disruptive force in the payments market.
On the date of publication, David Moadel 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.
David Moadel has provided compelling content – and crossed the occasional line – on behalf of Crush the Street, Market Realist, TalkMarkets, Finom Group, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.