In the fast-paced world of cryptocurrency, few platforms have made as significant an impact as Crypto.com. Launched in 2016, it was initially designed as a cryptocurrency payment gateway aimed at accelerating global adoption of digital currencies. Co-founded by Kris Marszalek, Rafael Melo, Gary Or, and Bobby Bao, the platform evolved from its original name, Monaco, to Crypto.com, with its native token, previously known as Monaco Coin (MCO), rebranded to CRO.
The State of CRO Token
Despite its ambitious beginnings, 2022 proved to be a turbulent year for Crypto.com and its CRO token, largely due to external market pressures and declining investor trust. This turmoil was exacerbated by the collapse of the FTX exchange, which sent shockwaves throughout the cryptocurrency market. On November 14, 2022, the CRO token hit a staggering 52-week low of $0.0562, marking a dramatic decline from its all-time high of $0.9698 in November 2021.
As of late November 2022, CRO was trading at approximately $0.06364, signifying a drop of over 93% from its peak. Despite Crypto.com’s sponsorship of high-profile events like the FIFA World Cup in Qatar, the price of CRO has remained stagnant, reflecting a lack of bullish indicators in the market.
Understanding Crypto.com
Crypto.com has emerged as a major player in the cryptocurrency landscape, offering a wide range of services including an exchange, decentralized finance (DeFi) offerings like crypto lending and borrowing, a non-custodial wallet, and an NFT marketplace. The platform operates on a proof-of-stake (PoS) blockchain built using the Cosmos SDK, which is compatible with the Ethereum Virtual Machine (EVM), allowing for seamless integration with Ethereum-based smart contracts and decentralized applications.
CRO Tokenomics
According to CoinMarketCap, the CRO token has seen a return on investment (ROI) of 220% since its inception. As of late November 2022, there were 30.26 billion CRO tokens in total supply, with 25.26 billion currently in circulation. The maximum supply of CRO was initially set at 100 billion tokens. In February 2021, the company executed a significant token burn, eliminating 70 billion CRO tokens to bolster the value of the remaining supply.
Ownership and Distribution of CRO Tokens
The distribution of CRO tokens is noteworthy. As of late November, there were over 1 million holders of CRO tokens on the mainnet. The top 10 holders collectively owned 7.92% of the total supply, while the top 100 held 8.62%. The largest holder is Cronos, with 912.53 million tokens, representing 3.61% of the circulating supply. An anonymous wallet follows as the second-largest holder with 285.52 million tokens, or 1.13% of the total supply.
CRO Token on Ethereum
On the Ethereum blockchain, the distribution is even more concentrated. Data indicates that 92.58% of the CRO supply is held by the top 10 holders, and 96.04% by the top 100, raising concerns about the potential for market manipulation. The burn address alone holds a staggering 77.88 billion tokens, reflecting the scale of the initial supply before the burn mechanism was implemented.
Recent Challenges and Investor Sentiment
The recent downfall of FTX and the missteps involving a significant transfer of Ethereum by Crypto.com have further shaken investor confidence. On October 21, 2022, a misdirected transaction saw 320,000 ETH moved erroneously to another exchange, leading to widespread speculation about Crypto.com’s liquidity and operational stability. CEO Kris Marszalek has reassured investors of the company’s solvency, but concerns about the platform’s future linger.
Despite the challenges, Crypto.com continues to offer a comprehensive suite of financial services, aiming to remain a leader in the cryptocurrency sector. However, the recent market volatility and reputational issues may pose significant hurdles moving forward. As always, potential investors should conduct thorough research and consider their financial circumstances before entering the crypto space.
FAQs
- How many Crypto.com holders are there? As of late November 2022, there were over 1 million CRO token holders on the mainnet and approximately 283,322 on Ethereum.
- Who created Crypto.com? Crypto.com was co-founded by Bobby Bao, Gary Or, Kris Marszalek, and Rafael Melo in Hong Kong in 2016 and rebranded in 2018.
- Who owns Crypto.com? The platform is managed by Foris DAX Asia, a subsidiary of Foris DAX MT based in Singapore.
