Crypto.com saga continued

Okay now that grievances has mostly been aired, and the cronos ecosystem has somewhat found it’s support line and MMF have started to recover, I have been doing some digging and talking with trusted sources. Grab your popcorn and read on.

Crypto.com has always been focused on growth- be it sustainably or not and their products and services are targeted at bringing the mass market into crypto (as can be deduced by their mission statement).

To entice new customers (and poach clients from other platforms), they had to have a unique product. A flagship service that blew everything out of the water. Which the Crypto.com VISA card was. It allowed consumers to bridge crypto into their daily lives, and provided utility to the average consumer.

Obviously, with all the marketing crypto.com grew tremendously, and at the same time so did the Cronos ecosystem with its multitude of protocols. With this growth, the company is starting to be a market mover, and offer services that no other platform did.

However, the card service was becoming a burden. A black sheep if you will. It has become a loss leader for the company. Kris has emphasised that time and time again. As the company grew, so did its assets under management. The whales have moved in.

Just one tangible example is Dave Hanson with his $1.07 Million. He’s mentioned that he has made 38k in 6 months from staking his BTC and ETH, amongst other things. He’s got a Rose Gold card and is known to credit card churn so I have no doubt he’s taken advantage of the 5% cash back fruitfully. I’m sure there are other larger whales on the platform. This could not be sustainable for the company - not one bit. And an executive decision had to be done by Kris and the others at Crypto.com - cull it.

They had to cut out of the startup mindset if they want to be a long term market mover. They’ve got a flagship domain, they’ve got mainstream presence and they’ve got partnerships. The only thing holding them back is the constant sell pressure and the “high emissions” of CRO.

I’ll admit. They could’ve gone about it in a better way. They could have slowly introduced staggered reduction in rewards, and could’ve been moved to USDC or launched their own stablecoin to pay out rewards in and turn $CRO into a purely transactional instrument like $BNB but the damage’s been done. It was a $0.10 - $0.15 cent drop. In hindsight, it was better that they dropped this bombshell in a bear market to shake off weaker investors, but also it was probably for their own benefit too. I can’t comment on this.

Moving on, the future of Cronos likely is a strong one. We’ve got cronos play and it’s SDK launching soon in regards to Game.fi. Although I think the metaverse is a steaming hot pile of shit that needs to be developed with proper safeguards and efficient code / smart contracts, Cronosplay could be a behemoth in the space given that it takes the necessary steps to get there.

Keep this in mind too. The only way that $CRO remained in the $0.40 - $0.50 for most of this year was because of its single utility as a rewards token. Profits were being taken and there was a small (but still significant) constant sell pressure on the coin that had to stop if we want to move past $1 and beyond.

Think about it this way. If crypto.com was to hit a MC similar to $BNB, each $CRO would be worth $ 5 - 8. That would mean that I would have a 6 figure passive income and that’s with the modest Rose Gold card. The Obsidian holders would be banking HARD with nearly a 7 figure passive income. I don’t care what you say, that is NOT sustainable. Wherever the market brings us though. One thing to keep in mind is to never go beyond your mean, and that crypto is very volatile. I’ve seen my portfolio slash in half this weekend. It’s a bittersweet feeling, but retracements and corrections are needed. The community is still bullish, and so is the saying 七転び八起き (Fall down seven times, get up eight).