Why Crypto.com Coin Is Soaring Today
The cryptocurrency industry as a whole is having a bad day today, but the Crypto.com coin (CRYPTO: CRO) had other plans. The token posted a 21.4% 24-hour gain at 12:20 p.m. ET on Wednesday, as the Crypto.com company made a move more commonly associated with traditional businesses.
I’m talking about Crypto.com’s sponsorship of the sports arena currently known as Staples Center. According to numerous independent reports, the Singapore-based private cryptocurrency trading specialist is spending more than $ 700 million on a 20-year naming rights contract. The name change will take effect on Christmas Day, with the hometown of the Los Angeles Lakers hosting the Brooklyn Nets in a high-profile holiday showcase for the National Basketball Association.
The Crypto.com token is a cryptocurrency, not a stock, so it may seem odd that the token is moving on the kind of news that would normally affect stock market assets. But this token plays many crucial roles in the actual operations of Crypto.com, so it stands to reason that the cryptocurrency should gain in value as the underlying business transaction grows. This sponsorship should definitely bring more attention to the Crypto.com platform which can translate into positive financial results.
This isn’t Crypto.com’s first rodeo when it comes to seeking brand recognition through big name sponsorships. The company already has sponsorship agreements with the Formula 1 motor racing circuit, the Montreal Canadiens hockey team, the Ultimate Fighting Championship martial arts league and world-class soccer clubs in several countries. You may also have seen superstar actor Matt Damon promoting Crypto.com in television commercials – a marketing campaign with a budget of north of $ 100 million.
The Crypto.com token has now gained 688% in 52 weeks, comparable to Ethereum‘s (CRYPTO: ETH) 780% gain over the same period but far behind the similar functionally Binance Coin (CRYPTO: BNB), which posted a year-over-year return of 1,950%. Like Crypto.com Coin, Binance Coin helps the associated crypto-trading platform perform many of its core functions.
It is difficult to say exactly how successful Crypto.com’s sponsorship plans could be, as the playbook for promoting cryptocurrency is still being written. Today’s sharp price hike offset the industry-wide panic that hit virtually all cryptocurrency tokens earlier this week. The renowned Staples Center will surely remind investors to keep an eye on the future of this business and its internal cryptocurrency.
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