From signing a $100 million deal with Formula One to taking on the title sponsorship of the famous former Staples Center in a $700 million deal, Cronos (CRO-USD) is changing the game on how to lure the mainstream to a new product or unique space like cryptocurrency.
Cronos, the token of Crypto.com, was created to speed up the global adoption of cryptocurrencies by simplifying access and utility and improving the security of the cryptocurrency space to ensure that people have absolute control over their identity, data and money.
Founded in June 2016 as Monaco, the company was renamed Crypto.com after it bought that domain name in 2018. It quickly embarked on aggressive campaigns to actualize its mission: to “accelerate the world’s transition to cryptocurrency.”
To sum up the uniqueness of Cronos and why you may need to add it to your portfolio in a simple sentence, it is what Binance — the world’s leading cryptocurrency exchange platform — is today and much more. However, its biggest attraction comes from a series of bold moves that make it look more like a traditional finance company.
Cronos as a Finance Company
Unlike other cryptocurrency companies, Cronos is establishing itself as a true finance company with top-rated security in key markets like the United States, Singapore and more.
Usually, cryptocurrency companies are limited to speculative trading that’s generally regarded as gambling by people outside the cryptocurrency space. Crypto.com, on the other hand, has moved beyond speculative trading to more closer to a proper finance company, removing barriers to access and incentivizing its programs to encourage adoption.
Crypto.com has done all this by giving users several options to invest and make money in the cryptocurrency space without speculative trading. For instance, users can earn up to 14.5% on their deposit under its Crypto Earn program and enjoy up to an 8% rebate on all spending done with the Crypto.com card from Visa (NYSE:V).
To ensure the safety of assets, Crypto.com expanded its insurance coverage to $750 million, one of the largest insurance coverages in the industry.
According to Kris Marszalek, co-founder and CEO of Crypto.com, to achieve the company’s mission of mass crypto adoption, security and data privacy there are two imperative factors.
He said “We believe that security and data privacy are the foundations of achieving mainstream cryptocurrency adoption. The renewed policy from Lloyd’s will significantly expand security protection for our growing user base, together with our previous large policy and ongoing proactive ‘Defense in Depth’ approach.”
Cronos Utility
Obviously, all these won’t work without utility and sound technology. Crypto.com focuses on four key solutions: payment, trading, financial services and metaverse.
To actualize all these through sound and user-friendly technology, the company has developed mobile applications to allow people buy and sell cryptocurrencies and non-fungible tokens (NFTs) at true cost. It launched Crypto.com Pay to ensure businesses can receive and make cryptocurrency payments.
On the more advanced side, it operates an exchange platform that offers 10x leverage to willing traders. It also built its own Decentralised Finance (Defi) wallet that gives people control over their cryptocurrency assets and also allows them to earn interest from Defi protocols.
In November 2021, Crypto.com developed a decentralised blockchain technology called the Crypto.org Chain that is Ethereum Virtual Machine (EVM) compatible. An EVM-compatible is a blockchain that can execute smart contracts like Binance Smart Chain, Polygon (MATIC-USD), etc., while a smart contract is a self-executing contract between buyer and seller without a third party. This means permissionless and trustless open-source technology.
An Iconic Brand
It is important to note that all these won’t work without the demand for Crypto.com products. Therefore, the company’s strategic partnership and sponsorship deals in iconic places like the Crypto.com Arena, and with the Serie A soccer league, the Ultimate Fighting Championship (UFC), Paris Saint-Germain F.C. soccer team in France, the Philadelphia 76ers, the Montreal Canadiens and many more are helping to create an iconic perception of its brand. That will help grow its users base even further.
For instance, Total Value Locked (TVL), the total value of crypto assets deposited in Defi protocol for interest, in Crypto.com pool now stood at $2.61 billion, making it the ninth ranked just a few months after announcing its Crypto.com Chain in November 2021. Presently, it has 10 million users and is still growing.
Why You Should Buy Cronos
Cronos is presently undervalued at 38 cents when compared to the Binance (BNB-USD) token that took off last year and rose to over $600 a coin from about $40 before pulling back to about $370 a coin as of today.
Crypto.com is not going mainstream, it is mainstream with all the strategic partnership and sponsorship deals. It is only a matter of time before it starts reflecting its value. Francis Ngannou, Israel Adesanya, and other UFC fighters now have their best moments in NFTs and are already encouraging others to participate.
Basketballers and other athletes are joining, thanks to Crypto.com. Binance has hardcore believers, but Cronos will have new-to-crypto, fresh money.
Also, the company has budgeted $100 million to sponsor projects in its Chain. This will boost participation and grow the community even faster.
On the date of publication, Samed Olukoya 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.
