Is Crypto com Cro coin a good investment for 2022? Fully Explained

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Is there still room for a 20X CRO Token or did we miss the boat? Let's take a look and see what we can find out. CRO is the token for Crypto.com, one of the top five exchanges in the entire world. Crypto.com has attracted ten million users in ten different nations around the world. And their marketing is all over the place, from their logo on the Staples Center to UFC fighter sponsorships to Formula One cars, and even Matt Damon is now doing Crypto.com advertisements.

Basic Fundamentals of CRO Coin

Before we can decide whether the CRO coin is a good investment, we must first understand the basics. Crypto.com issued an ERC20 token in November 2018, with an initial quantity of 100 billion tokens, 100 billion of which were controlled by Crypto.com. 

This token did not have a pre-sale, a public sale, or an ICO. Crypto.com then relaunched their coin on their own Crypto.org native blockchain in February 2021. Now, Crypto.com has done something unexpected in preparation for this launch. 

They announced that they will burn 70% of the CRO supply, which accounted for nearly all of the company's own CRO stockpiles. Out of the 70 billion coins in circulation, 59.6 billion CRO were burned immediately, with the remaining 10.4 billion burned over time as tokens are released from smart contracts.

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CRO was worth $0.08 per token before the burn. The price is now $0.59, seven months after the burn. The CRO token has become a deflationary asset as a result of the largest token burn in history in terms of dollar value. So, in addition to being deflationary, this token is also stackable. Stake CRO tokens on an exchange or directly through the Crypto.com app, which offers weekly staking incentives. 

The amount of profit you make from staking this token is determined by two factors. The amount you lock up and the length of time you stake. Given these considerations, Crypto.com's high-end rates are around 6% APR.

However, you can do better than this. I discovered that you can get rates as high as 23 percent APR on their DeFi wallet. However, if you want to get this rate by staking your CRO tokens, you'll need to do it in the Defi wallet and the native CRO from the mainnet of crypto.org. 

The ERC-20 CRO is not one of them. If you only have the ERC20 version, you can use their in-app CRO Migration Tool to convert your ERC20 CRO to the native CRO, after which you can stake on DeFi Earn. 3.47 billion tokens have been staked, accounting for roughly 14% of the entire 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.

Pros and Cons of CRO 

Let's look at the advantages and disadvantages of purchasing the CRO token right now. This coin nearly hit $1 in November, putting it among the top 10 digital assets in the world by market cap. 

During this period, CRO was discussed almost everywhere. However, buying a token when the trading chart is filled with green candles day after day is never a good idea. This is the riskiest time to buy a stock, a cryptocurrency, or basically any asset. 

It's critical to try to keep your emotions in check when you observe a token's price rise. That's easier said than done, I know. But it's human nature to expect something that's performing very well to continue doing so. So, if a token has increased by 60% in a day or two, there is a huge risk in purchasing it at that moment. 

Current investors may profit, sentiment may shift, and anything might happen in the short term. The greatest moment to buy something is when others are bored or scared, which is an awful reality. I like to refer to this type of investing as "bonfire investing."

The best investments I've ever made were the ones that felt like I was literally tossing money into a fire. This is because I was investing in initiatives at rock-bottom prices, projects that I thought had a lot of potentials. However, those were the days when I made the most money. When other people weren't buying, I was buying. And, indeed, the CRO token has fallen sharply from its all-time high.

So are we in this bored or fearful territory?

pic credit: coinmarketcap

The CRO token is currently down 38.6% from its recent all-time high, but it's up roughly 70% from where it was at the end of October. As a result, there appears to be some price support at the mid-fifty cent level. That is, however, a little less than where we are right now. 

This indicates to me that we are no longer in dangerous territory, but there is still a risk. If you're thinking about investing in CRO right now, the simplest technique is to just dollar-cost average into a position. 

Assume you wanted to put $1,000 into CRO. You may just buy $200 per week for 5 weeks to smooth out the volatility, or $50 per day for 20 days to smooth out the volatility. There's no right or wrong way to accomplish things, so do it your way.

Now, for every ounce of excitement surrounding CRO, there appears to be a pound of ambiguity. So, for example, I saw a TikTok yesterday claiming that BNB, Binance's native currency, is about 1000 times more expensive per coin than CRO. 

However, Binance has only 2.8 times the number of users, implying that CRO is terribly undervalued, according to this TikTok. While the price of Binance's currency is approximately 1000 times that of CRO, the market capitalization is just about six times that of CRO. 

Now, this could still be an argument that CRO is undervalued in comparison to BNB, but not by 1000 times. And this isn't how it works at all. The market cap of a coin is what matters, not its price.

With a market cap of 93 billion dollars and 28 million users, BNB has a market cap of around $3,300 for each user on the Binance platform. With a market capitalization of $15 billion and a user base of 10 million, CRO has a market capitalization of around $1,500 per user on the Crypto.com platform. 

So, just based on these facts, one could conclude that CRO is undervalued in comparison to BNB. However, this is the real world, and there are plenty more elements to consider than just the user base when calculating a cryptocurrency's price.

Benefits in holding  the CRO Token

Now, there are some additional advantages to owning the CRO token that we should discuss. As a result, holders of this token are eligible for discounted trading rates on Crypto.com. 

This token also grants holders access to their Syndicate program, which allows them to obtain priority token allocations when new digital assets are posted on Crypto.com, as well as their Supercharger, a rewards platform that allows users to stake tokens with the possibility to withdraw at any moment.

Crypto.com has its own NFT marketplace, where you can buy NFTs directly from celebrities like Snoop Dogg using the CRO currency. As you can see, if you're a frequent user of the platform, investing in the token makes the most sense. Having said that, it's an interesting token with a lot of anticipation surrounding it.

Bottom Line

So it's no secret that Crypto.com is everywhere, and just brand recognition might propel this coin to new heights. From their token burn to the introduction of their native blockchain to the launch of their Chrono sidechain, Crypto.com has accomplished a lot this year. I'm interested in seeing how the CRO coin does in 2022.