on the crypto
Cronos is the native token of the popular cryptocurrency app and exchange, Crypto.com. Its price has risen along with that of many cryptocurrencies last year, with an increase of more than 850%. This was partly the result of the platform's intense promotional activity. For example, it bought the naming rights of the Staples Center, now Crypto.com Arena. Matt Damon was also the face of a high-profile advertising campaign.
However, Cronos slipped from its position as a cryptocurrency darling in early May, after arbitrarily cutting stake prizes. Crypto.com quickly backed off the decision and announced far less drastic premium reviews. However, the move has severely dented investor confidence, as we will discuss in this article.
Basics of Cronos
Cronos is a utility token for the Crypto.com platform. Users can get commission discounts by paying with CRO and also redeem tokens to qualify for benefits. These include higher deposit interest rates and better benefits on Crypto.com prepaid debit cards. The more CROs wagered, the better the prizes.
- Launch date: 2018
- Market cap: $ 4,9 billion (CoinMarketCap, May 17).
- Availability: Some of the major US cryptocurrency exchanges. Several cryptocurrency exchanges choose not to list competing tokens.
Formerly known as Crypto.org Coin, Cronos changed brands last year to reflect the fact that Crypto.com is more than a cryptocurrency exchange. It is also a programmable blockchain that hosts a large ecosystem of applications. It is one of several alternatives to Ethereum (quotation ETH) that have gained ground as developers seek out less congested and lower cost blockchains. The Cronos blockchain smart contract works with both the Ethereum and Cosmos ecosystems (ATOM).
Is it worth buying it?
There are several factors to consider before buying cryptocurrencies: Your financial situation, your investment strategy, and your confidence in the potential of that particular project.
1. Your financial situation
The golden rule of cryptocurrency investments is to spend only the money you can afford to lose. That way, if things go wrong, your finances won't completely derail. Also, before buying cryptocurrencies, prioritize goals that will allow you to build long-term financial stability. For example, if you are looking to reduce debt or create an emergency fund, these goals should take priority over cryptocurrency investments.
2. How it fits into your investment strategy
Everyone has their own reasons for buying cryptocurrencies. The important thing is that you understand the risks involved and know how to minimize them. If you're not comfortable with high-risk assets, cryptocurrencies may not be for you.
It is also important to understand how CRO can fit the rest of your cryptocurrency portfolio and other investments. Cryptocurrencies are high-risk and volatile investments and it is not yet known how they will evolve. For this reason, experts recommend investing in cryptocurrencies only a small percentage of your total portfolio.
In conclusion
Crypto.com and Cronos have a lot to offer as a cryptocurrency exchange and smart contract platform. However, despite the intense promotional activity, they are not at the top in either category. According to CoinMarketCap, Crypto.com is the 15th exchange in terms of trading volume. And DeFi Llama places Cronos in seventh place in terms of the amount of money on its platform.
As with any cryptocurrency, it is important to do your own research to assess long-term performance. In the case of Cronos, among the areas to look out for are how it compares to the competition and what could happen if the cryptocurrency continues to fail.
