At this point, it’s not groundbreaking news to say that cryptocurrencies are not exactly having a bright moment. On the final weekend before Thanksgiving — and just a few hours before the Qatar Grand Prix — Bitcoin (CCC:BTC-USD) dropped about 9% of market value in the trailing week. In contrast, upstart Crypto.com Coin (CCC:CRO-USD) is up a staggering 55.5%.
Let’s face it. Even though blockchain asset proponents wax poetic about the volatility of cryptos, that it could make you a prince or pauper on the capricious hands of an analog clock, we don’t often see 50% moves or higher during a seven-day period. Don’t get me wrong, it happens but when it does, it’s definitely newsworthy.
Of course, what makes Crypto.com Coin stand out even more is its inverse correlation with the Bitcoin price. For years, the problem impacting the greater integration of virtual currencies is that the broader market tended to follow BTC. In other words, it’s difficult for a crypto project to establish credibility since its underlying tokens would eventually mimic Bitcoin.
Imagine if the S&P 500 index followed the ebb and flow of just one stock. Eventually, the entire investment analysis industry would fall apart. Earnings? Fundamental and technical analysis? You wouldn’t need to bother — just look at the one stock and be done with it.
But because Crypto.com Coin has printed such a divergent trend, it’s worth investigating. Obviously, most crypto proponents will wonder if CRO can sustain this trend. If this were any other time, I’d probably be hesitant in answering in the affirmative.
It’s not the first time that some cryptos have managed to trade “against” Bitcoin, only to fall back into order with everyone else. Still, I have some hope that CRO can succeed where others have failed.
Crypto.Com Coin is All Business
As Coinmarketcap.com explains, CRO “is the native cryptocurrency token of Crypto.com Chain — a decentralized, open-source blockchain developed by the Crypto.com payment, trading and financial services company.”
Further, the popular website explains, “Crypto.com Chain is one of the products in Crypto.com’s lineup of solutions designed to accelerate the global adoption of cryptocurrencies as a means of increasing personal control over money, safeguarding user data and protecting users’ identities. The CRO blockchain serves primarily as a vehicle that powers the Crypto.com Pay mobile payments app.”
Beyond the semantics, Crypto.com Coin comes off as another decentralized payment and financial services ecosystem. But where it distinguishes itself from the competition is what I would term its business-first approach.
As I’ve explained in prior coverage for Crypto.com Coin, the underlying platform landed a five-year sponsorship deal with Formula 1, with a price tag totaling more than $100 million. What’s beautiful about this move alone is that F1, the world’s premiere auto racing league (sorry NASCAR fans), is a rapidly expanding sport.
In fact, CBS News stated that “Formula 1 in 2020 had the greatest growth of any professional sporting entity in engagements across Facebook, Twitter, Instagram and YouTube, showing a 99% increase,” citing data from USA Today. Since more than eight-in-ten Americans get their news from digital devices, having such a presence online is a massive boost for Crypto.com Coin.
Indeed, F1 carries significant weight, not just in the U.S. but in most parts of the world. Better yet, the racing championship has huge ambitions with emerging markets such as China. To that end, F1, and by logical deduction Crypto.com Coin, will be buoyed by Alfa Romeo’s signing of Guanyu Zhou, the league’s first Chinese driver.
True, China has a draconian stance on cryptos but you can’t stop a good idea, especially when it’s constantly marketed.
The Price is Right
Further, a not insignificant point about Crypto.com Coin is that the price is right. Despite the tremendous rally that CRO has enjoyed, you can still buy individual tokens at less than 64 cents a pop at time of writing.
In the equities sector, such stats are meaningless. You look at factors like growth and earnings to estimate a stock’s holistic value proposition. It’s a similar concept with cryptos too except here’s the thing: Crypto.com Coin attracts an international audience. As such, you can’t assume that those watching F1 races will be able to afford the same items Americans and Europeans can.
However, with CRO listed in the sub-dollar menu, it appeals to our psychological makeup. We prefer owning whole units of something rather than fractional shares. Thus, the international community can feel rich owning CRO, even if they really aren’t.
To the folks behind the token, though, what does that really matter? It’s all an expansion of business to them.
On the date of publication, Josh Enomoto held a LONG position in BTC. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.