First Mover: Crypto.com’s Chain Token Dominated Markets in June With 33% Gain

First Mover: Crypto.com’s Chain Token Dominated Markets in June With 33% Gain

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Credit-card lender and wallet provider Crypto.com’s Chain (CRO) token surged 33% in June, dominating digital-asset markets as bitcoin, ether and XRP from Ripple all declined.

The CRO token’s gains made it the top performer during the month among digital assets with a market value of at least $1 billion, according to the data provider Messari.

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The second-best performer, Unus Sed Leo (LEO), rose 6.4% in June, followed by Chainlink (LINK) with a 4.6% price increase. The worst performer was bitcoin SV (), which tumbled 21%.   

Crypto.com has raised its profile partly through a “tremendous wave of marketing over the past several months,” John Todaro, head of currency research at the digital-asset firm TradeBlock, told First Mover in an email. 

Bitcoin (), the oldest cryptocurrency and the largest by market value, fell 10% during the month, shaving its year-to-date return to 27%, as price volatility narrowed amid ongoing uncertainty about the future of the coronavirus and related stimulus packages.

Ether (), the native token of the Ethereum blockchain, slid 9.3%, while  from Ripple lost 17%. 

For the second quarter of 2020, bitcoin rose 42%, more than double the 18% gain during the period for the Dow Jones Industrial Average, which was the .  

Hong Kong-based Crypto.com raised $26.7 million in 2017 through a sale of its MCO tokens, which are paid out as rewards to credit-card customers.

The CRO tokens, airdropped to MCO holders starting in  and now traded on more than 20 exchanges, can be used for “cross-asset intermediary currency settlement for the native Crypto.com Chain,” according to the company’s website. 

Of course, smaller digital assets like CRO can be volatile. The token has a market capitalization of $2.2 billion, compared with bitcoin’s $169 billion and ethereum’s $25 billion, according to Messari. 

Crypto.com press officials didn’t comment for this story. 

Headed by CEO , the company launched a beta version of its own cryptocurrency exchange in November, following the shipping of the MCO Visa cards earlier in 2019. Crypto.com announced in May 2020 that it had started .  

The company also has a payments app and cryptocurrency wallet (), and customers can earn interest-like rewards by staking bitcoin and other digital assets on its platform. 

“The company has aggressively pursued various lines of business which have attracted users, which then bleeds into its token,” Todaro wrote. 

Last month, Crypto.com sponsored a portion of CoinDesk’s Consensus 2020 virtual conference. And on Tuesday, the company’s website was advertising a “,” featuring bitcoin “at 50% off, with $2 million allocation!” (The promotion was due to end early Wednesday.)  

Earlier in June, the company announced it had obtained its , which appears automatically when the #CRO hashtag is inserted into a tweet. The publication  that such branded hashtag services have reportedly cost . 

“The official Twitter handle does frequent giveaways, which draws in more followers and retail traders of its token,” Todaro said.

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