Over the last few years, utility tokens made for exchanges have exploded in value, with one of these being Crypto.com Coin (CRO). CRO is the native cryptocurrency for Crypto.com, an exchange that has undoubtedly proven its tagline of ‘the world’s fastest-growing crypto app.’
The brand claims to have over 10 million users in most parts of the globe, offering an all-encompassing suite of financial products in crypto payment and trading services. Crypto.com is headquartered in Singapore and is an incorporated subsidiary of Malta-based Foris DAX MT Limited.
The exchange was initially founded as ‘Monaco’ in July 2016 by Kris Marszalek (CEO), Gary Or (CTO), Rafael (CFO), and Bobby Bao (head of corporate development). On 6 July 2018, the service was renamed Crypto.com, with the launch of CRO occurring on 14 November 2018.
After the Binance Coin, CRO is the second most-traded exchange token (#14 overall) with a market cap of $14.9 billion, according to CoinMarketCap. The cryptocurrency’s value was just two cents shy of the $1 mark in November 2021 and is now worth $0.58.
Let’s explore what CRO is and why it’s performed exceptionally well in recent history.
What is CRO?
As briefly mentioned, CRO is Crypto.com’s utility token, providing a number of perks for holders to participate in the exchange’s ecosystem. Users primarily receive discounted trading fees, staking incentives, and participate in merchant cashback offers with the exchange’s payment solution, Crypto.com Pay.
Below is a breakdown of each incentive:
- Trading fee discounts: For spot and margin trading, customers receive a 10% discount on maker-taker fees across all 30-day monthly volume tiers with a minimum stake of 5000 CRO (equating to $3000 presently).
Different CRO stake levels exist, providing even bigger discounts the higher up you go, with the largest being 100% off with a 50 000 000 CRO stake or more (worth at least $30 million presently).
- Staking: With a minimum stake of 5000 CRO, clients can expect returns of about 10% APR (annual percentage rate) paid daily. Staking with any provider is an attractive component because of the passive income prospect.
The hope is to earn from the extra rewards and the potential natural appreciation of the token itself by holding it. Moreover, with the exchange’s latest blockchain, Crypto.com Chain, those who’ve staked CRO can become validators on the network to process transactions and earn even more in CRO.
- Crypto.com Pay incentives: Here, customers can settle payments with a host of merchants like Travala and Coinzilla, buy gift cards from hundreds of brands like Airbnb, Best Starbucks, and Apple iTunes, buy mobile airtime, and transfer crypto to friends.
Using CRO, customers can receive 2.25-5% discounts on gift cards and up to 55% on mobile based on their token stake.
CRO is a non-mineable cryptocurrency and is secured by the Ethereum blockchain. As an ERC20 or Ethereum-based token, you can store CRO in several wallets compliant with this standard along with the exchange’s proprietary one.
For purchasing purposes, you can, of course, buy CRO from Crypto.com and many other reputable exchanges like Coinbase, Gate.io, KuCoin, Huobi, Uniswap, etc. Before the rebrand to Crypto.com, 30 billion CRO tokens were created, allocated for different purposes as follows:
- 10% – community development
- 20% – ecosystem grants
- 40% – network long-term incentives and capital reserve (both frozen until 07/11/2022).
- 30% – Secondary distribution and launch incentives
Presently, 25.2 billion CRO are in circulation, about 83% of the entire finite supply. Investors like this scarcity factor with such tokens as it can theoretically make it more valuable if demand increases over time.
Why has CRO been so valuable
Up to this point, CRO has increased by an impressive 926% since the start of 2021, dwarfing Bitcoin’s 161% and Ethereum’s 591% within the same period. There are a few understandable reasons for this meteoric growth.
Much of this increase can be first traced back to February 2021, when billions of CRO tokens were ‘burned,’ a process of removing a large sum of coins to increase the value of those remaining in circulation.
Secondly, Crypto.com launched its own blockchain a month later, a feature which many leading exchanges like Coinbase and Kraken don’t currently have.
Thirdly, according to June 2021 research by Crypto.com, the number of global crypto users has more than doubled to 221 million. The exchange currently controls a fifth of this market share, an incredible achievement.
This year, the exchange has been participating in strong marketing campaigns, enforcing the exchange’s all-inclusiveness in crypto trading products ranging from basic exchanging, wallets, VISA cards to NFTs, lending to staking, and derivatives.
It’s clear to see these are the main factors contributing to why the exchange is indeed one of the fastest-growing brands in its niche for 2021.
All these developments have consequently increased the demand for CRO as it’s often the case with exchange tokens like Binance’s BNB (Binance Coin)
Such tokens are integral to their respective exchanges as they boost trading activity and liquidity while also providing worthwhile incentives and rewards for users of that exchange. However, investors have seen these tokens as more than just utility coins but serious investments.
Holders of CRO should undoubtedly be buoyant on the future of Crypto.com as the exchange has expanded its marketing and partnerships efforts this year.
In mid-November 2021, it was announced the Staples Center would be renamed the Crypto.com Arena from 25 December 2021, making the exchange an official partner of the LA Kings and Los Angeles Lakers. This deal was rumored to be worth $700 million.
These partnerships are in addition to the existing sport sponsorship deals Crypto.com has with the UFC, Paris Saint-Germain, Philadelphia 76ers, Serie A, Formula One, Montreal Canadiens, and others, along with signing Matt Damon as brand ambassador.
Overall, these are considerable developments that investors will hopefully foster more demand for the CRO token in the future.