Why Crypto.com continues to rise today

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What happened

Crypto.com Coin (CRYPTO: CRO) jumped over 9% in the 24-hour period ending at 10:30 a.m.ET today. This push has firmly placed CRO as the 13th largest cryptocurrency by market cap, just below Dogecoin (CRYPTO: DOGE) and Shiba Inu (CRYPTO: SHIB), in 11th and 12th places, respectively.

Today’s push appears to be a continuation of the strong momentum from last week. Last Wednesday, Crypto.com signed the largest naming rights deal in history, paying $ 700 million to put its name on what is now the Staples Center in Los Angeles (home of the National Basketball Association Lakers ) for the next two decades. .

Image source: Getty Images.

So what

Crypto.com’s token has climbed the market cap rankings in an incredible way. Investors seem to appreciate the catalyst this naming deal provides for the brand. The Singapore-based crypto trading and investment platform is one of many in this space, and this naming rights deal seems to be viewed by the bulls as a key differentiator. The hope is that this long-term marketing deal could make Crypto.com one of the go-to places for crypto investors to step into the game.

Staples Center won’t officially move to Crypto.com Arena until Christmas Day. But this is the day the arena plays host to one of the most watched basketball games, shining the spotlight directly on the Crypto.com brand.

Now what

Cryptocurrencies such as the CRO token remain highly speculative. The fact that this naming rights deal increased the value of the CRO by over 70% in the last week alone is incredible. If Crypto.com had another week like this, it is entirely possible that this token will overtake Dogecoin and Shiba Inu in value by next week.

Investors in the crypto space seem to value cryptocurrencies based on the value their underlying networks can offer users. The hope is that this naming rights deal will lead to increased activity on the Crypto.com platform. Time will tell how successful this deal is in creating value.

For most businesses, such a large naming rights deal could be a huge liability that investors might struggle with. But the current crypto market continues to be hot, currently rewarding such high-profile maneuvers.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Questioning an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.

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