Can Crypto.com token reach $ 1?

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Crypto.com’s digital currency (CRYPTO: CRO) didn’t get as much attention as high-profile coins like Shiba Inu (CRYPTO: SHIB) and Dogecoin (CRYPTO: DOGE) last year, but it was still the best performing among cryptocurrencies. in 2021.

Crypto.com Coin, from the crypto exchange of the same name, jumped 852% to $ 0.55, easily outperforming the largest cryptocurrencies, including Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH). Crypto.com Coin rose nearly 2,000% for the year in November, hitting nearly $ 1 at a peak of $ 0.96, but a massive sell off in the crypto markets at the end of the year slowed down its annual yield. Altcoin (essentially any coin other than Bitcoin) has also continued to decline this year, as expectations of rising interest rates deflate the asset bubble that developed during the pandemic.

But at a current price of around $ 0.48, is Crypto.com Coin a good candidate to cross the $ 1 mark in 2022 – a milestone it will surely reach before Shiba Inu, which is the subject of similar speculations? Before we answer this question, let’s take a step back and take a look at what makes the digital token unique.

Image source: Getty Images.

What is Crypto.com coin?

The native coin of the Crypto.com exchange, Crypto.com Coin (CRO) is a versatile cryptocurrency intended for use in payments. It offers an advantage that allows companies to accept the coin but receive payments in stablecoins or fiat currency, thus eliminating the risk of volatility associated with accepting crypto as a means of payment.

As a coin created by Crypto.com, the future of CRO will most likely be determined by Crypto.com, which is now the ninth largest cryptocurrency exchange in terms of trading volume. CRO offers users perks like discounts for trading on Crypto.com, and they can earn 10% interest by listing the coin, among other perks including getting a premium Visa card.

Crypto.com is also in the midst of a marketing blitz that may be unprecedented in the crypto industry. The Hong Kong-based company bought the naming rights to the Los Angeles arena formerly known as Staples Center, home to the NBA Lakers and other professional sports teams, as part of a $ 700 million deal that went into effect on Christmas Day and will last 20 years. This news, announced on November 17, helped propel the CRO to its peak on November 24.

Most recently, Crypto.com hit the airwaves with a new ad campaign featuring movie star Matt Damon, touting Crypto.com with the tagline “Fortune favors the brave.”

In many ways, the CRO token is essentially a bet on the growth of the Crypto.com exchange.

Will CRO break $ 1?

Whether Crypto.com Coin exceeds $ 1 this year might depend more on the larger cryptocurrency market than on the performance of the CRO itself, as cryptocurrencies tend to rise and fall together.

Already this year, heavyweights like Bitcoin and Ethereum have come under significant pressure, with both currencies having fallen by double-digit percentages so far in 2022. Market sentiment towards cryptocurrencies and growth stocks appears to be shifting. as investors expect monetary policy to tighten this year, with the Federal Reserve forecasting several interest hikes this year.

In other words, 2022 could mark another crypto winter, after the euphoria of the past two years.

However, in the longer term, the outlook for CRO and Crypto.com looks brighter. The marketing campaign looks like a smart move to gain market share in an industry that has only just started to take hold. Many investors still don’t own crypto, and getting name recognition with the Los Angeles Arena rebranding and Matt Damon campaign will help the company gain a larger share of new cryptocurrency accounts. .

At its current price of around $ 0.48, the CRO should more than double to crack $ 1. Given the volatility of the cryptocurrency and the likely growth of Crypto.com, altcoin should eventually make it happen, even if that doesn’t happen this year.

This article represents the opinion of the writer, who may disagree with the official recommendation position of a premium Motley Fool consulting service. Were motley! Challenging 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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