Should You (or Anyone) Buy Cronos (CRO)?


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Cronus’ decision to cut the rewards put the cat among the pigeons.


Key points

  • Cronos is the native token of the Crypto.com platform and the smart contract ecosystem.
  • Falling prices and the cryptocurrency trade could present challenges for Cronus.
  • The decision to buy crypto depends on your financial situation and your long-term belief in a project.

Cronos is the native token of the popular cryptographic application and exchange Crypto.com. Its price skyrocketed along with many cryptocurrencies last year, with an increase of more than 850%. This was partly the result of the platform’s intense promotional activity. For example, he bought the naming rights from the Staples Center, now Crypto.com Arena. Matt Damon was also the face of a high profile ad campaign.

However, Cronus abandoned his position as a beloved crypto in early May after arbitrarily reducing his betting rewards. Crypto.com quickly backtracked on the decision and announced much less drastic reward reviews. Anyway, the move has put a big dent in investor confidence, as we will discuss in this article.

Cronos basics

Cronos is a useful token for the Crypto.com platform. Users can get discounted rates by paying with CRO and also bet tokens to qualify for benefits. These include higher interest rates on deposits and better profits on Crypto.com prepaid debit cards. The more you bet on CRO, the better the rewards.

  • Release Date: 2018
  • Market leader: $ 4.9 billion (CoinMarketCap, May 17).
  • Availability: Some major U.S. currency exchanges. Several cryptographic exchanges choose not to list competing tokens.

Formerly known as Crypto.org Coin, Cronos changed its name last year to reflect the fact that Crypto.com is more than just a cryptocurrency exchange. It is also a programmable blockchain that hosts a wide range of application ecosystems. It is one of several Ethereum (ETH) alternatives that have gained momentum as developers look for less congested blockchains with lower costs. Cronos’ smart contract blockchain works with the Ethereum and Cosmos (ATOM) ecosystems.

Should you buy it?

There are several factors to consider before buying crypto: your financial situation, your investment strategy, and your belief in the potential of that particular project.

1. Your financial situation

The golden rule of crypto investing is to spend only the money you can afford to lose. That way, if things go wrong, it won’t completely derail your finances. In addition, it prioritizes the goals that will generate long-term financial stability before buying any crypto. For example, if you are trying to pay off debt or build an emergency fund, these should take precedence over cryptocurrency investments.

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2. How it fits in with your investment strategy

Everyone has their own reasons for buying crypto. What matters is that you understand the risks involved and know how to minimize them. If you’re not comfortable with high-risk assets, encryption may not be right for you.

It’s also important to be clear about how CRO can fit in with the rest of your cryptocurrency portfolio and your other investments. Cryptographic assets are high-risk, volatile investments, and there are many things we don’t know about how they will evolve. Therefore, experts recommend that you put only a small percentage of your total portfolio in cryptography.

3. How Cronos can work in the long run

Cronus has some important positives. It is a well-established smart contracting platform that has already attracted a decent number of projects. And the Crypto.com exchange has been relatively successful in attracting cryptocurrency investors. However, the decision to change the betting rewards earlier this year raises questions about how sustainable everything is.

Of course, the exchange he did drastically decrease the proposed changes, but there is no guarantee that you will not try to change the betting profits again later. The CRO price may also drop within six months when reduced reward rates occur. There is also concern that he has decided to reduce the rewards. Some fear that Crypto.com has spread too far with high promotional spending.

Note that the weather has become more risk-averse and some of the heat has disappeared from the cryptographic industry, which could be a problem for cryptographic platforms. Other cryptocurrencies such as Coinbase are already slowing down their hiring efforts due to falling trading volume. As an investor, it is worth considering how the platform can survive a prolonged fall in both prices and cryptocurrency trading.

Bottom line

Crypto.com and Cronos have a lot for them as a cryptocurrency exchange and smart contract platform. However, despite the intense promotional activity, it is not above the bill in either category. According to CoinMarketCap, Crypto.com is the 15º largest exchange in terms of trading volume. And DeFi Llama ranks Cronus in seventh place in terms of the amount of money on its platform.

As with any cryptocurrency, it’s important to do your own research to assess how it can work in the long run. For Cronos, some areas to pay attention to include how it faces competition and what can happen if cryptography continues to perform poorly.

The right investment mentality in cryptocurrencies

Investing in crypto can be very risky. We believe that investors should approach these assets like any other technology investment, with a long-term mindset and low expectations. The fool realizes that there may be opportunities for investors. We actively recommend certain cryptocurrencies to our community. But we encourage everyone to be well-versed before investing to understand the potential risks and rewards.

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