- Cronos jumps higher as digital assets digest all available news
- CRO is a cut above the others thanks to superior branding
- Speculators should give this another look
With such a meteoric rise in the cryptocurrency sector in the waning months of 2021, it was perhaps inevitable that the new year would start off with a disappointing thud. But the crimson ink particularly affected Cronos (CRO-USD), the token tied to the blockchain network associated with the Crypto.com ecosystem. Unfortunately, declining prices for digital assets hurt retail demand for cryptos.
But then again, the opposite dynamic should be positive for Cronos — and so far, that is how circumstances are playing out. While 2021 largely brought in upside catalysts, 2022 brought us a still ongoing pandemic, soaring inflation and a geopolitical flashpoint that brought us an energy crisis and even more inflation. Needless to say, these circumstances weren’t helpful for Cronos.
However, with hopes for some kind of diplomatic solution for the Russian invasion of Ukraine not entirely unreasonable, risk-on sentiment returned over the past few days. Of course, few assets are quite as risk on as cryptos, which naturally bolstered the case for Cronos.
Still, CRO isn’t merely riding the coattails of other benchmark assets. Indeed, the immense branding advantage that Cronos levers could be a difference maker for the underlying token in the not-too-distant future.
The Marketing Machinery Behind Cronos Is on Point
As an altcoin, one of the questions that investors have about Cronos is a basic one: what makes CRO so compelling compared to its rivals?
This inquiry has become even more pertinent in recent years. As I write this, there are more than 18,000 cryptos available for trading. At this rate, we might see over 20,000 cryptos by May or June. Given so much competition, why should anyone trust that Cronos is the one?
I get it. Mathematically, you take one and divide it by 18,000 and that is your basic probability of success that CRO can beat out its rivals as the performance king. However, the fundamental value of Cronos isn’t so much about its blockchain architecture but rather its perhaps unparalleled marketing machinery.
As you may know, the Crypto.com brand is seemingly everywhere these days. The CRO ecosystem’s website provides a list of sponsorship deals and the potential return on investment is enormous. Consider these statistics:
- Crypto.com owns the naming rights to the arena where the Los Angeles Lakers play. In turn, the Lakers’ average national TV viewership is 1.5 million viewers, commanding the biggest TV footprint in the NBA.
- The platform behind Cronos inked a five-year sponsorship deal with the Australian Football League, which averages 4.2 million viewers per round.
- Crypto.com has a multi-year partnership with CONMEBOL Libertadores, the most important soccer tournament in South America, commanding 5 billion viewers overall for the final matchup.
Say what you want about other ecosystems like Coinbase (NASDAQ:COIN). Nothing out there — at least to my knowledge — competes against the sheer aggressiveness of Crypto.com’s marketing machinery. That is a massive advantage for Cronos.
Cronos Gets a Slipstream from Formula 1
As a Formula 1 fan, I’m going to find some way to slip in the auto-racing league into the mix. As I’ve mentioned previously, Crypto.com also secured a long-term partnership with Formula 1, meaning that the enterprise is capturing more and more eyeballs, not just domestically, but also abroad.
To be fair, F1 racing has never been quite as popular in the U.S. as it is in Europe and Asia. However, that could change soon thanks to a little company called Netflix (NASDAQ:NFLX). Specializing in compelling original content, Netflix got itself a hit with Drive to Survive, a reality TV show following the racing series for an entire season.
According to Business Insider, the show topped 50 million viewers as of the publication date (Oct. 28, 2021). In addition, The Guardian mentioned that the Netflix program helped to drive tremendous growth and interest in F1 stateside.
For the folks behind Cronos, these positive developments reflect a massive opportunity in the making. It is not just about the sheer numbers. Rather, Crypto.com is steadily seeping into the world’s top entertainment showpieces. Thus, whether through conscious marketing efforts or through the subliminal marketing effect, the ecosystem’s brand is becoming ubiquitous.
Honestly, what more can you ask for?
Speculators Should Apply
As with any crypto venture, Cronos is risky. It is extremely risky. Off the top of my head, I’m probably down about 30% from my initial investment in CRO. So, if my personal experiences with an investment mean anything to you, let the buyer beware.
However, if the buyer is a speculator that knows what they’re doing, I think CRO is a great wager. Listen, on a technical basis, Cronos is probably a dime a dozen. But the sheer volume of marketing initiatives that the Crypto.com brand commands is bonkers. It is well worth taking a shot with speculation-earmarked capital.
On the date of publication, Josh Enomoto held a LONG position in CRO. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.