Send me real-time posts from this site at my email
Motley Fool

Why Crypto.com Continues to Surge Today

What happened

Crypto.com Coin (CRYPTO: CRO) has surged more than 9% during the 24-hour period ending at 10:30 a.m. ET today. This surge has firmly placed CRO as the 13th-largest cryptocurrency by market capitalization, just below Dogecoin (CRYPTO: DOGE) and Shiba Inu (CRYPTO: SHIB), in the 11th and 12th spots, respectively.

Today's surge appears to be a continuation of strong momentum from last week. Last Wednesday, Crypto.com signed the largest-ever naming rights deal in history, paying $700 million to put its name on what is now the Staples Center in Los Angeles (home of the Lakers of the National Basketball Association) for the next two decades.

Image source: Getty Images.

So what

Crypto.com's token has ascended the market cap rankings in incredible fashion. Investors appear to like the catalyst this naming deal provides the brand. The Singapore-based crypto trading and investing platform is one of many in this space, and this naming rights deal appears to be viewed by bulls as a key differentiator. The hope is that this long-term marketing arrangement could make Crypto.com one of the go-to places for crypto investors to get into the game.

The Staples Center won't officially transition to the Crypto.com Arena until Christmas Day. But that is the day the arena will host one of the most-watched games in basketball, shining the spotlight directly on the Crypto.com brand.

Now what

Cryptocurrencies such as the CRO token remain highly speculative. The fact that this naming rights deal has boosted the value of CRO by more than 70% over the past week alone is incredible. Should Crypto.com have another week like this, it's entirely possible this token could surpass Dogecoin and Shiba Inu in value by next week.

Investors in the crypto space appear to be valuing cryptocurrencies in accordance with the value their underlying networks can provide users. The hope is that this naming rights deal will result in a surge of activity on the Crypto.com platform. Time will ultimately tell how successful this deal is in creating value.

For most companies, such a large naming-rights deal could be a massive liability that investors might have difficulty with. But the current crypto market continues to be red-hot, rewarding such high-profile maneuvers right now.

10 stocks we like better than Crypto.com
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

They just revealed what they believe are the ten best stocks for investors to buy right now... and Crypto.com wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

*Stock Advisor returns as of November 10, 2021

Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.


Source

Popular posts

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue