Can a strategy linked to political figures change the course of a cryptocurrency? The price of $CRO, the native token of the Cronos network backed by Crypto.com, rose 40% following the news of the launch of the joint strategy Trump Media Group CRO, reaching levels not seen since May 2022.
Context of the push for $CRO
The announcement included the creation of a $6.4 billion treasury jointly managed by Trump Media, Crypto.com, and Yorkville Acquisition. Within hours, $CRO rose from $0.16 to over $0.23, capitalizing on a 44% increase in its valuation, positioning itself at a $7.8 billion market cap.
It is important to understand that $CRO, previously known as Crypto.org Coin and originally an ERC-20 token on Ethereum, migrated to its own blockchain in 2021. Although the recent rally is significant, its price is still nearly 300% below its all-time high in 2021.
Opportunities and risks
While some investors celebrate the rebound and believe that $CRO deserves a permanent place in the top 10 cryptocurrencies, there are well-founded warnings. The cancellation of a planned burn of 70 billion tokens could affect scarcity and long-term value.
Moreover, the involvement of political figures raises legitimate questions about the volatility induced by factors external to the project's economic metrics.
What do you think? Can $CRO sustain this growth or will politics intervene too much in its fate?
