New Delhi: The cryptocurrency
market is going through tough times. Investors got spooked on Saturday and this brought down their investment by as much as 35 per cent this weekend. However, there are ample fundamentally strong tokens that have delivered multibagger
returns in the longer run, shrugging off the volatility and wild swings.
One such example is Crypto.com Coin, which has rallied more than 6,000 per cent since its launch three years ago. However, the token lost about 45 per cent of its value in the latest round of correction.
The token, which was released in December 2018 and traded at $0.0153 then, hit an all-time high of $0.9491 by the end of November 2021. However, it was trading at $0.5433 on December 6, 2.00 PM IST.
Despite the recent round of freefall in prices, the token has been able to hold on to its multibagger tag as it has risen by 225 per cent in the last three months. It has surged 475 per cent in the period, compared to the all-time high.
According to crypto experts, the token has ample use cases and is eyeing to create more.
Ishan Arora, Partner, Tykhe Block Ventures, said it has emerged as one of the major players in the space with superb branding and positioning. “They are the major sponsors in F1, UFC and now also have stadium rights for the LA Lakers, which is a huge deal,” he added. “Use cases include from being an exchange, to offering crypto debit cards if you lock up the CRO token.”
The marketing team at Crypto.com has been aggressively promoting the usage of its native token across various platforms. Recently, they acquired the naming rights of the Staples Arena in Los Angeles for $700 million, said Edul Patel, CEO and co-founder, Mudrex. The arena has been renamed the Crypto.com Arena. “The hype created around this activity across different social media platforms created a FOMO of sorts among several investors. Huge buying volumes provided a massive boost to the token,” he added.
Popular crypto assets like Bitcoin aren’t backed by any physical commodity. They are backed by complicated mathematics and cryptography.
Shivam Thakral, CEO of BuyUcoin, said crypto was a global phenomenon so it would be a medium of exchange in most parts of the world even if it was not used as a medium of exchange in India. “Blockchain gives Bitcoin its inherent value with controlled supply within a decentralised infrastructure,” Thukral said. “There are also other asset-backed cryptocurrencies like USDC and PAXG which are quite popular among users.”
The CRO blockchain primarily serves as a vehicle that powers the Crypto.com Pay mobile payments app. Crypto.com plans to expand the reach of the CRO platform to power its other products as well.
Investors should always do their own research before buying any tokens, said Arora of Tykhe.
Market experts suggest investors should always attempt to buy tokens at a good value. However, they also advise investors to understand the fundamentals, community and projects backed by the token and blockchain.
“Exchange tokens such as Binance Coin (BNB), Pancake Swap (CAKE) have provided significant returns to investors. Investors could look at making an entry once the market settles down,” added Patel of Mudrex.