Crypto.com Coin (CRO) Soars: Understanding the 180%+ Surge & Future Potential

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CRO just hit a new all-time high -- should you buy?

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Key points

• The Crypto.com Coin rose almost 30% yesterday on news it had bought the naming rights to the Staples Center. On Christmas Day, the Staples Center will be renamed the Crypto.com Arena.
• Until now, CRO has not performed as well as other exchange coins. But it is now bucking the overall downward price trend.
• Increased crypto regulation could have a big impact on CRO's price.

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The Crypto.com Coin (CRO) has just hit a new all-time high of $0.5931 before falling back slightly. Indeed, CRO rose 28% yesterday according to CoinMarketCap data. The increase stands out because it goes against the crypto tide -- there's been a general pullback in crypto prices in recent days.

It means the coin is up over 180% in the past month and over 800% since the start of the year. If you'd bought $1,000 of CRO on Jan. 1, it would be worth over $9,000 today.

So what is the CRO token and why is it on the rise?

What is CRO?

Crypto.com is a popular cryptocurrency exchange with over 10 million users worldwide. CRO is its token, which customers can use to get discounted trading prices and qualify for better rewards.

CRO is available from some top cryptocurrency apps and exchanges, such as Coinbase and (unsurprisingly) Crypto.com. But several exchanges don't list the native tokens of other platforms, so CRO isn't as easy to buy as other popular cryptocurrencies.

What's driving the price rise?

There are two main reasons for Crypto.com coin's positive movement:

1. The Staples Center will soon be renamed the Crypto.com Arena

Crypto.com grabbed headlines yesterday with news the company had bought the naming rights to the Staples Center. From Christmas Day, the iconic sports and entertainment venue will be renamed the Crypto.com Arena. Press reports suggest the 20-year deal cost $700 million.

It will also make Crypto.com an official partner of the Los Angeles Lakers and the LA Kings, both of which call the Staples Center home. Crypto.com already has a string of sports partnerships, including Formula One, the NBA's Philadelphia 76ers, the NHL's Montreal Canadiens, and some European soccer teams.

2. Matt Damon is the face of its new ad campaign

At the end of October, Crypto.com launched a global advertising campaign featuring Oscar-winning actor, Matt Damon. The commercial, entitled "Fortune Favors the Brave," is themed around what human beings have achieved throughout history by daring to pursue their dreams.

The launch of the campaign on Oct. 28 marked the start of a steady price rise for CRO.

Should you buy CRO?

If you're a Crypto.com user, owning and staking CRO can have benefits. Staking is when you tie your coins up on a platform to earn rewards. CRO holders can earn better spending rewards on their Crypto.com visa debit cards, better interest rates on the Crypto.com earning product, and reduce trading fees.

However, if you are buying CRO purely as an investment, here are a few things to consider:

• Be cautious when buying a coin that just hit an all-time high. The cryptocurrency market is rife with speculation, which can often push a coin's value to unsustainable levels. CRO may continue to rise, or it may stabilize around this price point. But it could also fall next week. If you're buying in the hope of another 180% gain in 30 days, you might want to think again.
• Research the coin carefully to understand its long-term potential. Look at the management team, what problem the coin solves, how many people might want to use it, and understand how the token works.
• Look at Crypto.com's competitors and understand each one's strengths and weaknesses. Before October, the Crypto.com coin had not performed as well as other exchange tokens. To give you an idea, between Jan. 1 and Sept. 30, CRO rose 156%. FTX's token, FTT, was up 766%, and Binance's token, BNB, was up 884% for the same period. That could mean CRO still has room to grow, but it's important to understand what held it back before and how it might stand out from the competition in the future.
• Be aware of the potential impact of upcoming regulation. Stricter cryptocurrency regulation in the U.S. is now inevitable, but it isn't clear what form it will take. It looks likely that cryptocurrency exchanges and the decentralized finance industry will be impacted, especially if they have to follow stricter bank-like rules.
• Only invest money you can afford to lose. Before you invest any money in Crypto.com's coin, make sure your emergency fund is topped up and you're good on your retirement savings. Cryptocurrency investments can be highly volatile and risky, so it's important to first cover your other financial bases and to only invest with money you can live without. That way, if CRO's price falls dramatically, it will be disappointing, but it won't impact your overall financial situation too much.

As an investor, it can be challenging to evaluate what is a pretty new and untested market. Like many cryptocurrencies, exchange tokens like CRO have posted significant gains this year. That's prompted many experts to warn this is a bubble that may soon burst. Others predict that it is only the beginning.

Ultimately, only you know your investment strategy and your tolerance for risk. But, a long-term buy-and-hold approach can certainly help navigate the often choppy crypto waters. A five- or even 10-year outlook on your investments makes it easier to avoid short-term speculation and ride out market fluctuations. It also encourages you to spend time picking the tokens that you believe will perform well long term.

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