Ever since the November Presidential election, US President Donald Trump has become one of the most influential figures in crypto. Most recently, he influenced Cronos (CRO), causing it to go up 30% following an announcement of a partnership with Crypto.com. Still, the latest news also highlighted ongoing criticism targeting Crypto.com and its utility token.
On Monday, March 24, Crypto.com CEO Kris Marszalek revealed his company’s partnership with Trump’s business. The exchange will be Trump Media and Technology Group’s (TMTG) exclusive partner for launching exchange-traded funds (ETFs). Once launched, these ETFs will be available for trading through Crypto.com’s platform.
According to TMTG CEO and Chairman Devin Nunes, the funds will focus on crypto and tech companies with rapid growth and are “unencumbered by woke nonsense.” This is a nod to Trump’s latest focus on combatting “diversity, equity, and inclusion” (DEI) practices, which he considers politically radical.
Following the news, Crypto.com’s utility token Cronos reached a daily high of $0.1147, registering a 30% daily increase.
What’s the Potential of the Trump Deal for Cronos?
Such high-profile partnerships boost token prices through a mix of fundamentals and hype. Firstly, the association with Trump’s brand inherently drives demand, as evidenced by his own meme token. On the other hand, exclusive access to TMTG ETFs could boost Crypto.com’s profits.
Theoretically, a boost in Crypto.com profits will go toward Cronos token burns, which reduces its supply and thereby boosts its price. However, Crypto.com faced criticism for failing to remove burned tokens from circulation permanently.
Blockchain investigator ZachXBT revealed that in 2021, the company re-issued 70% of the total supply of CRO tokens that were supposed to be removed from circulation. This resulted in a 90% fall in the token’s price from its all-time high of $0.9698. If investors are not confident in CRO’s burn mechanism, the Trump deal may not have a lasting effect on the CRO token price.
Furthermore, the current demand for “woke-free” investments remains unclear. Moreover, most major investors and companies have been scaling back their DEI programs since Trump took office. This means that TMTG may struggle to differentiate its offering.
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