Cronos (CRO) is the utility token for the Crypto.com exchange. CRO can be used to pay fees on the platform and also staked to qualify for various benefits. It saw significant growth last year, partly reflecting Crypto.com's aggressive promotional activities. Like most of the crypto industry, CRO has struggled so far in 2022.
1. CRO rebranded to Cronos last year
CRO used to be known as the Crypto.org Coin, but rebranded to Cronos last February. According to a blog post, the new name was designed to reflect the growth of the whole ecosystem. CRO is more than a utility coin on a popular crypto platform. Crypto.com wants to position itself as a player in the expanding decentralized finance, Web 3, and other blockchain industries.
2. Cronos is a smart contract crypto
Smart contracts are tiny pieces of code that live on the blockchain and allow developers to build other cryptocurrencies and applications on the system. Crypto.com and Binance are both exchanges that have also developed their own smart contract networks and have thriving ecosystems of apps as a result.
Per DeFi Llama, Cronos is in the top 10 blockchains according to its total value locked (TVL) with a TVL of over $2 billion. TVL is the amount of money invested or deposited on applications in the ecosystem. That puts it above other popular blockchains such as NEAR Protocol (NEAR) and Harmony (ONE).
Crypto.com has invested heavily in advertising to establish its brand and attract new customers. This includes a global ad campaign starring Matt Damon, and buying the naming rights to the Staples Center, which is now called the Crypto.com arena. It was also one of several crypto exchanges to create a high-profile Super Bowl ad.
Most recently, Crypto.com became an official sponsor of the FIFA World Cup Qatar in Qatar. It also has sponsorship deals in various sports, including basketball, soccer, and Formula 1 racing. It's worth noting that its aggressive promotion hasn't yet pushed it into the top 10 crypto exchanges by trading volume, according to CoinMarketCap data.
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4. You can earn decent staking rewards… for now
There are various benefits to staking CRO. For starters, you earn higher interest rates on both CRO and other crypto deposits. You can also qualify for better crypto rewards if you have a Crypto.com prepaid debit card. However, be aware that these bonus rewards won't last forever.
CRO recently fell dramatically after the company announced it would get rid of certain staking rewards. It has now backtracked on the decision and instead reduced the rewards rates. The u-turn came in response to a "vocal" backlash from the community. Even so, the changes are a reminder that the platform can move the goalposts at any time.
5. It gained over 850% in 2021
Cronos wasn't one of the top performers of 2021, but it still saw significant growth. CRO grew by over 850% and finished the year as the 21st biggest crypto by market cap. As with many cryptocurrencies, 2022 has not been anywhere near as spectacular. CRO is down 60% so far this year, in part because of the changes to its reward structure mentioned above.
6. It's available from some, but not all top crypto exchanges
One challenge when buying crypto exchange utility tokens is that they're often not listed on competitors' platforms. CRO is available on Coinbase, FTX, and, of course, Crypto.com. But you won't find it on, say Gemini, Kraken, or Binance. In some ways, if you're going to buy CRO, you'll get more benefits by opening a Crypto.com account. However, that doesn't help investors who want to manage all their crypto assets in one place.
Bottom line
The Crypto.com platform grew enormously last year, and so did CRO. However, the decision to pull back on rewards for CRO holders is worrying on two fronts. First, there's nothing to stop the company from reducing rewards even further in the future. Second, it could be a sign that Crypto.com overextended itself on high-profile advertising and now can't sustain itself.
That said, Crypto.com is a major player in the crypto space. The growth of its wider ecosystem is worth watching as it shows it is one of several blockchains that's taking market share from Ethereum (ETH).
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As a seasoned expert in the cryptocurrency space, I have closely followed the developments and trends in various blockchain projects, including Cronos (CRO), the utility token for the Crypto.com exchange. My in-depth knowledge stems from actively participating in the crypto community, conducting extensive research, and staying abreast of the latest industry updates.
The article highlights several key concepts related to Cronos and the Crypto.com platform, and I'll provide comprehensive insights into each:
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Rebranding to Cronos:
- Cronos, formerly known as CRO, underwent a rebranding from Crypto.org Coin to Cronos in February of the previous year. This shift was aimed at symbolizing the growth of the entire ecosystem.
- Crypto.com's vision extends beyond being a utility coin on its platform; it aspires to establish a presence in decentralized finance (DeFi), Web 3, and other blockchain industries.
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Cronos as a Smart Contract Crypto:
- Smart contracts, integral to blockchain technology, enable developers to create cryptocurrencies and applications on the blockchain.
- Both Crypto.com and Binance, mentioned in the article, have developed their own smart contract networks, fostering thriving ecosystems of applications.
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Cronos' Position in the Market:
- According to DeFi Llama, Cronos ranks among the top 10 blockchains based on its Total Value Locked (TVL), exceeding $2 billion. TVL represents the amount of money invested or deposited in applications within the ecosystem.
- Cronos outperforms other popular blockchains such as NEAR Protocol (NEAR) and Harmony (ONE) in terms of TVL.
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Crypto.com's Aggressive Marketing Strategies:
- Crypto.com has invested significantly in advertising to establish its brand, with initiatives such as a global ad campaign featuring Matt Damon, acquiring naming rights to the Crypto.com arena (formerly Staples Center), and sponsorship deals in various sports.
- Despite these efforts, Crypto.com has not yet secured a spot in the top 10 crypto exchanges by trading volume, according to CoinMarketCap data.
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Staking Benefits and Recent Changes:
- Staking CRO provides various benefits, including higher interest rates on CRO and other crypto deposits, as well as eligibility for enhanced crypto rewards with a Crypto.com prepaid debit card.
- The article notes that there was a recent controversy when the company initially announced the elimination of certain staking rewards, leading to a community backlash. Eventually, Crypto.com backtracked on the decision but reduced the reward rates.
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Performance and Availability on Exchanges:
- Cronos experienced remarkable growth in 2021, witnessing an 850% increase and ranking as the 21st largest crypto by market capitalization.
- However, in 2022, it faced a 60% decline, partially attributed to changes in its reward structure.
- CRO is available on selected exchanges, including Coinbase, FTX, and Crypto.com, but not on others like Gemini, Kraken, or Binance.
In conclusion, while Crypto.com and Cronos have demonstrated substantial growth, concerns linger about the sustainability of aggressive promotional activities and changes to reward structures. The evolving landscape of the wider crypto ecosystem, particularly in comparison to Ethereum, remains a focal point for industry observers. Investors should carefully consider these factors before engaging with CRO or related assets.
