My Theory On The Crypto.com Nightmare & The Price Point At Which You Should Buy Into CRO
CDC isn’t running out of money, they’re just being their typical shady selves.
Fun Fact: Besides the obscene amounts of money that Crypto.com has spent on marking, it most recently took part in a $45M investment round in Boba Network.
When? April, 5th 2022..
Do I agree with the ridiculousness of what CDC is doing right now?
Absolutely not.
But I also don’t believe for a single moment that CDC is somehow running out of money or facing a liquidity crisis, as is being claimed all over Reddit at the moment.
In fact, in January 2022, CDC set aside a whopping $500M as funding for investments in early stage web3 startups. These steps are strikingly similar to Binance’s.
The fact is, Binance didn’t become a crypto giant through its crypto trading app alone, but through its carefully thought out (and generous!) investments in small and promising crypto startups (Coin98 and SandBox are two obvious examples).
The difference between Binance and CDC, however, is that CDC seems to be funding these investments entirely off of its balance sheets. Fucking insane, I know.
But the fact remains… Crypto.com is clearly not running out of money and despite the current and unfavorable macro picture, I fully believe CDC can still raise billions in extra funding — if it wanted to do so. Before the actions CDC took this week, it was regarded as one of the strongest and most well-respected crypto starups.
If CDC Needed To, It Will Have Been Able To Raise Billions In An Instant.
Why, then, cut Crypto Earn rewards by introducing a ridiculous 3,000 USD tier and remove nearly all the benefits of having a CDC cards? Why, also, “stagger” the two announcements?
I believe as I mentioned previously, that CDC wants to move away from its Crypto Earn program and Card Incentives. You may disagree with the aggressiveness of the pullback, but it’s likely that CDC wants to position itself in time for the next bull run so that it’s regarded primarily as follows:
A Cryptocurrency Exchange
A Cryptocurrency DeFi Platform
A Blockchain Network (CRONOS)
I also have an “alternative” theory that CDC deliberately crashed the price of CRO to initiate a crypto “buyback” at a much more reduced price. This seems to be supported by the aggressiveness of CDC’s actions as well as by its “shady” history with MCO.
I, honestly, have no way of proving that CDC is currently shoring up its supplies of CRO, but I think it’s interesting to note the following:
There are more “BUY ORDERS” than “SELL ORDERS” for CRO on CDC’s Exchange app — who tf is buying CRO in the current market conditions?
CDC kind of f*cked itself in February 2021 when it burned almost 80% of the CRO token supply (70 Billion tokens). This leads me to think that they might be running low on CRO and desperately looking for ways to increase their supply.
Don’t get me wrong, I think CDC is shady AF.
But I also doubt they're facing any financial difficulty.
I 100% believe that they will survive to the next bull market in two years where they will position themself as a direct competitor to Binance and the Binance Smart Chain.
But What Does This Mean For YOU?
Don’t Sell Your CRO Right Now —> CDC is changing its fundamentals. This doesn’t mean it has lost its fundamentals. I, personally, believe it will succeed in its rebrand and will give Binance, BSC, and BNB a run for their money. Don’t sell for a loss now when you can sell for a profit 2 years from now (inflation-adjusted…)
Don’t Buy Anymore CRO Right Now —> market conditions are currently very volatile and I, honestly, have no idea where the price of CRO will settle. I believe CRO will not fall below 0.20 USD/CRO but I also might be wrong if CDC takes actions to move the price further down. At the end of the day, I think you have 2 years of bear market instability on your side.
Prepare To Buy More CRO In The Next 6-12 Months —> if you haven’t lost faith in the company, you may consider buying more CRO but at the 0.20-0.25 USD/CRO price point. Bear in mind that your DeFi wallet will continue to offer you ~12% returns on staking your CRO through various validator nodes if you do choose to buy CRO in the next 6-12 months.
This is not financial advice. This is merely what I will personally do.
As Always,
Invest In Your Tomorrow,
Before Tomorrow Burns Your Dirty CDC ASS,
2030 Investments M.D.