Big news over the last few days. Trump Media has signed a partnership with Crypto.com, a Singapore based crypto company worth billions. The agreement is worth over $6.5 billion and led to an immediate rise in the price of the CRO token, at one stage up 50% on the day. It has since gone back down but is still double the price it was prior to the announcement. Crypto.com confirmed this news via a press release on their website.
This move by Trump Media is certainly interesting and a change from recent years. This would have been unthinkable under the previous Biden administration who were actively prosecuting and attempting to stop a range of cryptos and crypto companies from XRP to Binance.
Cronos, a platform built upon its own Cronos blockchain, has been making considerable inroads into the financial sector with its Debit Card over the last few years, which offers cashback rates of up to 8% on purchases, depending upon the user's purchases and staking of the CRO token. The card's versatility in supporting a variety of cryptocurrencies, including Bitcoin, Ethereum, and Cronos itself, as well as being used around the world has slowly built its user base and use of the Cronos network. Crypto.com has also done deals with the likes of Travala, a crypto travel company that provides users with an extra 4% off if they use the CRO token to purchase hotels or flights.
Crypto.com allows for quick and cheap movement of the CRO token between users. In fact, they even offer a 10% rebate when you send CRO tokens to friends and family - qualities that are likely appealing to Trump Media as they look for a safe, reliable and cheap crypto partner to power transactions on their social media platforms. As Crypto.com states on their website, CRO will be incorporated into the Truth Social and Truth + social media platforms which will both promote and widen the use of the CRO token and Cronos blockchain.
It is evident that this investment is not merely a financial decision for Trump Media, but rather a PR move to grow their social media platform's influence and relevance within the crypto community. By aligning with the Cronos ecosystem, their aim may be to leverage the Crypto.com platform's growing prominence and user base to cross pollinate their own social media platforms. Both Truth Social and Crypto.com can promote each other and use each other's systems, a win win for both.
However, not only Mr Trump's companies, but others like the private State Street and Blackrock companies are making strategic investments into crypto. Hopefully, these investments will not lead to centralization of CRO tokens and other crypto tokens. It is important that crypto remains accessible and usable by the everyday person and not just the rich and elite few. I hope everyday people continue to get involved with crypto and use them to move money, support friends and family, as well as grow assets and wealth.
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