- CRO price has rebounded in the past few hours.
- Crypto.com has moved to assure customers as outflows jumped.
CRO price has crawled back on Tuesday as concerns about Crypto.com fizzled. The coin rose to a high of $0.0780, which was about 31% above the lowest level this week. This rebound gives Cronos a market cap of over $1.8 billion.
Is Crypto.com at risk?
The biggest crypto story of this month was the collapse of FTX, the second-biggest cryptocurrency exchange in the world. It was also the biggest implosion of a crypto exchange since Mt. Gox collapsed in 2014.
CRO, which was created by Crypto.com, came into the spotlight as some investors drew the parallels between the firm and FTX. For one, the two companies spent billions of dollars in advertisements and sports sponsorship.
In 2021, Crypto.com paid over $700 million for the naming rights of the former Staples Center. It also spent vast resources in marketing campaigns and acquisitions.
Therefore, some investors started predicting that Crypto.com would have a bank run such as what happened with FTX. Indeed, many customers have withdrawn most of their funds recently.
However, Crypto.com has moved to assure its customers that its business was safe. The CEO held an Ask Me Anything (AMA) on Monday, where he assured that the company had a strong balance sheet.
He also appeared on CNBC and talked about his business. Talking on Cronos, he said that the company has never utilized CRO the way FTX did with FTT.
Indeed, FTT and CRO are vastly different tokens. FTX Token was a coin used to incentivize users in its ecosystem. CRO, on the other hand, is the utility token for Cronos, a leading rival to Ethereum. Cronos has been used to build products like MM Finance and Tectonic. It has a total value locked (TVL) of over $820 million.
So, is CRO at risk? We believe that Crypto.com is a better-run entity than FTX. The management has also committed to publish a proof of reserve soon.
CRO price prediction
The four-hour chart shows that the Cronos price has made a steady recovery in the past few days. It has managed to move above the 23.6% Fibonacci Retracement level. It is also attempting to move above the 25-day and 50-day moving averages.
Similarly, the Relative Strength Index (RSI) has moved above the neutral level of 50. Therefore, there is a likelihood that CRO price will continue rising as buyers target the 50% retracement level at $0.0936.
