Is CRO the new BNB?

Is CRO the new BNB?

By NeoTokyoUnicorn | Neo Tokyo Unicorn | 22 Nov 2021


Crypto investors are always looking for sources of good income with contained risk. In a market heavily plagued with volatility as the crypto market, there are many offers of DeFi products able to return good yelds without the risks implied in trading. But, while DeFi doesn't imply the risks involved with trading, it suffers from other kinds of risk, less tied to the volatility of the asset but more concerned with the fundamentals sphere. Common DeFi risks involve the solidity of the project, the lack of istitutional investors, the risk of the platform of being hacked, or of a malicious rug pull.

A good alternative which mitigates these risks is looking for token with solid fundamentals and backed by strong ecosystems.

One of these choices often falls on exchange's native tokens. Those tokens offer their stakers the attractive of being rewarded with special privileges inside the exchange's ecosystem, like being able to partecipate in ICO or having discounts on trading fees.

One of this kind of token, which have mostly surged in the last year, is the Binance native token BNB. BNB has many features, among them the one of being used as gas on the Binance blockchain. This has heavily increased its price, rewarding with high premiums its early investors.

Other exchanges' coins have encountered similar fates, even with less amazing performances: for example Kucoin's KCS which has continuosly broken its ATH.

Exchanges' native tokens offer the advantages of living in a protected ecosystem, less suitable to be attacked from hackers and backed by the exchange's reputation. 

One exchange that has recently invested a lot in promoting its own otken is Crypto.com. This exchange started with an interesting program of reward, both via the Supercharger option and by usual staking. Lately, Crypto.com invested also a lot in communication with a massive marketing campaign, featuring impressive ads.

This investement repaid and many people invested in the token, which surged to its ATH.

Tradingview CRO

Fact is that CRO has a market cap of $18,642,796,645 (source: https://coinmarketcap.com/it/currencies/crypto-com-coin/). Market Cap is high: consider tahta BNB has a market cap of $96,676,641,253, but it's valued at the time of this writing at 577 USDT (https://coinmarketcap.com/it/currencies/binance-coin/).

Crypto.com often make burns of its coins, so there is also this aspect to be taken in account.

Technical analysis show a period of long accumulation which has recently been broken to reach ATH.

This is not financial advising. The writer is invested in the assets quoted in this article.

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NeoTokyoUnicorn
NeoTokyoUnicorn

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Neo Tokyo Unicorn
Neo Tokyo Unicorn

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