The CRO Token - did we miss the boat
or is there still room for a 20X?
Let's dive in and find out.
CRO is the token for Crypto.com,
one of the top five exchanges in the entire world.
Crypto.com has managed to gain 10 million users
in ten unique countries world worldwide.
And their advertising is basically everywhere,
from their logo on the Staples Center,
UFC fighter sponsorships,
Formula One cars, and even Matt Damon is
now doing commercials for Crypto.com.
Also, to spice things up for this video,
I'm going to run a trading bot on the CRO token
and then we'll check in at the end of this video
to see how this performs.
So we're going to run a Spot Grid bot.
Click Create.
We're going to put $1,000 into this bot.
Click OK.
I'm going to leave the AI parameters set.
Click Create.
Everything looks good, Confirm.
And we'll check in on how this thing performs
at the end of the video.
Now, before we get into whether the CRO token
is a buy, we need to understand the fundamentals.
In November 2018, Crypto.com
launched an ERC20 token,
which had an initial supply of 100 billion
of which were initially held by Crypto.com.
There was no presale, no public sale
and no ICO for this token.
Then in February 2021, Crypto.com
relaunched their token on their very own
Crypto.org native blockchain.
Now, in preparation for this launch,
Crypto.com did something kind of surprising.
They announced that they would be burning 70%
of the entire CRO supply,
accounting for almost all of the
company's own CRO holdings.
Now, out of the 70 billion coins here,
59.6 billion CRO were burned right away
and 10.4 billion will be burned over time
as tokens are unlocked from smart contracts.
Before the burn, CRO was priced at $0.08 per token.
Now, seven months after that burn,
the price is at $0.59.
This is the largest token burn in history
by dollar value, and it makes the CRO token
a deflationary asset.
So on top of this token being deflationary,
it is also stakable.
You can stake CRO tokens on an exchange
or through the Crypto.com app directly,
which releases staking rewards weekly.
Given these factors, rates on Crypto.com
are about 6% APR on the high end.
But you can actually do better than this.
I found that, on their DeFi wallet,
you can get rates as high as 23% APR.
However, in order to get this rate
If you only have the ERC20 version,
you can actually migrate your ERC20 CRO
to the native CRO
with their in- app CRO Migration Tool,
and then you can go ahead and stake on DeFi Earn.
The total amount of token staked is
3.47 billion, which is approximately
14% of the circulating supply.
The more the supply that is staked,
the easier it is for the price to run up
in the future, because fewer people will
be able to sell their tokens right away.
Now, let's break down the pros and cons
of buying the CRO token right now.
In November, this token almost hit $1,
where it found itself in the top ten digital assets
in the entire world by market cap.
In this time you saw CRO mentioned
literally everywhere.
This is the most high risk time to invest
in a stock, a crypto, or really any asset.
I know that's easier said than done.
But it's human nature to expect something
that is doing extremely well
to just go ahead and keep doing well.
at that time.
It's an unfortunate reality that the
best time to buy something
is when others are bored
or others are scared.
This is what I like to call bonfire investing.
The best investments I've ever made
are the ones that felt like I was straight up
throwing cash into a bonfire when I did it.
This is because I was buying at bloody bottoms
in projects, projects that I believe
had a lot of potential.
But those are the times when
I had the returns.
I was buying when other people simply weren't buying.
And well, the CRO token has
corrected significantly from all-time high.
So are we in this bored or fearful territory?
That's what we need to find out.
Right now, the CRO token is down
38.6% from its recent all time high,
but it's around 70% up from
where it was just at the end of October.
So there seems to be some price support
around the mid 50 cent range.
However, that's slightly less
than where we're sitting right now.
This says to me that we're out of
scary territory, but of course there is still risk.
If you're interested in CRO at this time, the
easiest strategy mentally
is to simply dollar-cost average
into a position here.
So let's say you wanted to invest $1,000 in CRO.
and this would flatten the volatility
However you want to do it, there's no
no right or wrong method here.
And luckily there's actually bots
that will do this for you.
So you don't have to think about
doing your daily buy of $50.
I've used the Kucoin DCA bot
several times in the past by just
auto-buying a set amount daily.
I'll have Kucoin linked in the description of this video,
if you're interested in trying that out.
It's kind of cool to automate this kind of stuff
with a bot.
Just be a smarter investor with a bot.
Now I will say, for every ounce of excitement
around CRO, there seems to be
a pound of confusion.
So for example, I saw a TikTok yesterday
that said BNB, Binance's native currency,
costs nearly 1000 times more
than CRO per coin.
However, Binance has only
2.8 times more users,
and the hypothesis of this TikTok
was that, that means CRO is severely undervalued.
So while Binance's coin price
is nearly 1000 times CRO's,
the market cap is only about six times larger.
Now, this still could be an argument that
CRO is slightly undervalued compared to BNB,
just not 1000 times undervalued.
So given Binance's market cap of 93 billion
and their 28 million users,
BNB has about $3,300 in market cap
for every user on the Binance platform.
CRO has a market cap of $15 billion and
10 million users,
so CRO has a market cap of about
$1,500 for every user
on the Crypto.com platform.
So based on these factors alone,
one could argue that CRO is slightly
undervalued when compared to BNB.
However, of course, this is the real world
and there are far more variables than just
user base that we need to consider
are factored into a crypto's price.
Now, there are other benefits in
holding the CRO token
that we should discuss as well.
So holders of this token are
eligible to get discounted prices when
trading on Crypto.com.
Holding this token also offers
access to their Syndicate program,
where holders are able to receive
priority token allocations when
new digital assets are listed on Crypto.com
and holders are able to participate in their
Supercharger, which is a rewards platform
that allows users to stake tokens
with the option to withdraw at any time.
Crypto.com has their own NFT marketplace
where you can purchase NFTs with
the CRO token directly from celebrities
like Snoop Dogg.
So as you can see, an investment in the token
makes the most sense if you're an active user
of the platform.
However, that being said,
it's an interesting token with
with a lot of excitement behind it.
And the crypto bot results are in.
This has been running for just over four days now.
Let's go ahead and check how it's doing.
We are down, 1.1%
now I have to say, I'm not super surprised about this
because the token has decreased in price about
but 5% since I started the bot
and bots lose money when a token goes down in price,
you just don't lose quite as much as
the full 5% or whatever was lost.
You make money when bots are trading sideways
or going up in price.
So I got to be transparent with the results.
I'm just going to let this run a little bit longer
to see how it does longer term.
So it's no secret that Crypto.com is everywhere
and brand awareness alone could
take this token really far.
I'm just impressed with all that Crypto.com has
accomplished this year from their token burn,
the launch of their native blockchain,
and the launch of their Chrono sidechain.
I look forward to seeing how the CRO token
performs throughout 2022.
Now a final note here to check out my sponsor, BlockFi,
where you can earn a yield
on a variety of the largest cryptos
and stable coins, and they offer a
Crypto Credit card with excellent benefits,
including how it pays you cash back in Bitcoin.
I will have BlockFi linked in the description below.
From here, I also recommend you check out
this video on smaller, high potential crypto projects.
Now I would like to thank you so much for watching
and I hope you have a profitable day!