The price of Crypto.com Coin (CCC:CRO-USD) keeps on dropping. On Jan. 1, it was trading for around 57 cents per token. In less than two weeks, it’s dipped down to 48 cents per token. As cryptocurrencies continue to be under pressure, CRO-USD, which went up nearly five-fold during late October/early November, looks set to give back more of its gains.
Even as the factor that gave it these gains in the first place (increased awareness) remains in play. You may have heard that this coin’s backer, Crypto financial services firm Crypto.com, plans to run its first Super Bowl ad. News of this temporarily gave it a boost late last month.
The actual running of it on Super Bowl Sunday 2022 could give it a one-day spike. Yet, while the platform behind this crypto is becoming as well-known as Coinbase (NASDAQ:COIN), I wouldn’t count on this outweighing changing market conditions that have made investors skittish about risky assets.
To some, this may remain a great long-term opportunity. But with the high possibility there’s more downside ahead until the dust settles, it may be too early to buy.
The Latest With Crypto.com Coin
As we’ve seen play since the fall, the firm behind CRO token continues to raise its profile. First, with its global ad campaign, featuring Matt Damon. Then, its big ticket sports sponsorship deals. This includes its $100 million Formula 1 sponsorship deal, recently discussed by my InvestorPlace colleague Josh Enomoto.
Along with this, its deal for the naming rights to Los Angeles’ Staples Center. Now, there’s its upcoming ad that will air during Super Bowl LVI on Feb. 13. As this ad blitz has carried on, the public has become more aware of this crypto-centric financial services company.
Now, how will this benefit Crypto.com Coin?
Like with other cryptocurrencies, it’s largely the increased usage catalyst that could potentially help CRO-USD experience long-term price appreciation. As the number of Crpyto.com users, in particular users of its staking and credit card products, goes up, so too will its token price.
Then again, maybe not until the dust settles on the latest crypto market downturn.
Like I’ve discussed in past coverage, as this market stays volatile, even with token-specific catalysts, it’s going to be difficult for it to bounce back.
As Before, Much Comes Down to the Market’s Next Move
If you’ve read my latest articles on cryptocurrencies, you may accuse me of sounding like a broken record, bringing up how the Federal Reserve’s hawkish moves are compelling investors to take a “risk-off” approach with digital assets.
But currently, that’s what is playing out, and it could stay that way for some time.
Since it moved beyond rumor and became fact that the Fed was ready to raise interest rates, commentators bullish on crypto have made attempted to make the argument that rate hikes are already priced-into Bitcoin (CCC:BTC-USD), Ethereum (CCC:ETH-USD), and other major cryptocurrencies.
My counter to this: It’s unclear what will be the full extent of the Fed’s hawkish-to-dovish pivot.
In other words, when it comes to its plans to tighten monetary policy in order to fight inflation, it’s not as we know for sure all it’ll do is raise rates three times, at a pace gradual enough not to rock the markets further. Instead, it may have to raise rates many more times, at a more rapid speed, in order to get soaring consumer prices under control.
In the months ahead, we can see the hawkishness continue to ratchet up. With it, the market will carry on with “risk-off” behavior, cycling out of riskier plays.
How does this relate back to Crypto.com Coin?
If the crypto rout carries on, CRO could give back more of its gains, dipping back toward 20-30 cents per token before the dust officially settles.
The Best Play Is To ‘Wait and See’ on Crypto.com Coin
In closing, I’ll also note that only time will tell whether its epic ad campaign will result in it becoming one of the world’s most well-known and respected brands.
The Matt Damon ad campaign has the crypto world hyped about it. But over in the mainstream press, it’s being met with an eye roll. As for its Super Bowl ad? A Super Bowl ad does not a venerable brand make. Just ask Pets.com.
However, with the moves it has made to become a major platform for crypto-related financial services, I’ll concede Crypto.com stands to level up on its success. This could help send its native token to much higher prices.
Still, while the risk/return may be in your favor for a long-term position, with the strong possibility it falls back below 30 cents before it breaks past a dollar? Wait and see for now.
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.