That is the primary time I’ve had the chance to write down concerning the Crypto.com Coin (CCC:CRO-USD). As I all the time do the primary time round, I determine exactly what utility the crypto brings to the desk.
Name it a utility sniff check.
Does CRO-USD have it? I’ll have a look.
The Good thing about Proudly owning Crypto.com Coin
I heard from a bit hen not too long ago that CRO-USD was the be-all and end-all of cryptocurrencies. This well-informed particular person, who will stay anonymous, recommended that this was the crypto I can buy to enter the fray.
Nonetheless, the one factor I can say with certainty about cryptocurrencies is that I possess an open thoughts. So, give me argument why I ought to personal Shiba Inu (CCC:SHIB-USD) and I’ll leap on board.
I’ve but to listen to one.
So, to evaluate the utility of the Crypto.com coin, I want to know why it exists within the first place.
In line with Courageous New Coin, Crypto.com acquired its begin in 2016 beneath the identify Monaco. In 2017, the corporate created the MCO token by an preliminary coin providing (ICO) that raised $26.7 million. The next 12 months it rebranded to Crypto.com. Lastly, in 2019, it launched a cryptocurrency change and the remainder is historical past.
As I discovered with the Celsius Network in June, any outfit that gives greater rates of interest for my financial savings is worthy of consideration. Crypto.com offers rewards on your crypto deposits in exactly the identical method. It additionally offers loans based mostly in your crypto holdings, pre-paid Visa (NYSE:V) playing cards with tiered rewards and cashback, and naturally, the shopping for and promoting of cryptocurrencies.
Lastly, it launched its NFT (non-fungible token) market in 2021, offering artists with an alternative choice to OpenSea, the chief within the shopping for and promoting of NFTs.
Naturally, all of these items are pushed by the Crypto.com coin.
Whereas I proceed to have a problem with individuals utilizing crypto to pay for issues when dollars work simply fantastic – to not point out CRO-USD has appreciated by 1,062% year-to-date, making a t-shirt buy with the Crypto.com coin a really costly mistake – the concept of a local coin for the Crypto.com buying and selling platform and Crypto.com blockchain makes full sense.
So, sure, the Crypto.com coin does possess some utility.
Valuing the Utility
That is the place issues get a bit dicey. In spite of everything, until you’re getting an possession stake in Crypto.com – the revenue-generating enterprise that’s driving the coin’s appreciation – it doesn’t appear a lot completely different than a number of the speculative altcoins equivalent to Dogecoin (CCC:DOGE-USD) or the beforehand talked about Shiba Inu.
So, how do you worth its utility?
InvestorPlace’s Stavros Georgiadis not too long ago highlighted a number of the advantages of Crypto.com. I listed most of them within the earlier part. Nonetheless, my colleague did level out that it has greater than 10 million users. As this grows, you could be positive CRO-USD’s worth will recognize.
The one factor that does confuse me is my colleague’s pleasure with a few of its sponsorships, equivalent to System One and its $700 million deal to acquire the naming rights for the Staples Middle for the subsequent 20 years. These have little to do with utility and all the things to do with advertising. And that’s fantastic. Getting Matt Damon to promote your corporation isn’t a foul concept, however it’s not an attribute of utility.
For that, I’ll must take a better have a look at its open-source blockchain.
So, to sum it up, I’ve seen sufficient to know that the Crypto.com coin passes the preliminary utility sniff check. Over the subsequent few weeks, I’ll be taking a better look to see if it’s acquired what it takes to maneuver into the highest 10 cryptocurrencies by market capitalization.
I’m intrigued, however you gained’t see me shopping for CRO-USD quickly. Maybe by the top of the 12 months, my place can have modified.
On the date of publication, Will Ashworth didn’t have (both instantly or not directly) any positions within the securities talked about on this article. The opinions expressed on this article are these of the author, topic to the InvestorPlace.com Publishing Guidelines.
Will Ashworth has written about investments full-time since 2008. Publications the place he’s appeared embrace InvestorPlace, The Motley Idiot Canada, Investopedia, Kiplinger, and several other others in each the U.S. and Canada. He notably enjoys creating mannequin portfolios that stand the check of time. He lives in Halifax, Nova Scotia.