Altcoin Spotlight: What is Cronos?
There are always new altcoins coming up on the top coin charts. It seems like not even a week can go by without a new coin making a big splash. In the past couple of weeks, the most recent big splash has been made by a cryptocurrency called Cronos.
Cronos claims to be the next big cryptocurrency, essential for the adaptation of cryptocurrency as a widespread form of payment. But is it really that special? Read on to find all about Cronos before you decide whether or not it might be a good addition to your portfolio.
What is Cronos?
Cronos is a blockchain network powered by Ethermint that can interact with both the Ethereum and Cosmos blockchains. Therefore you can use Cronos in the same way you would use either of these blockchains to create NFTs, join the metaverse, or get involved in the DeFi space.
Like many other altcoins competing with Ethereum, Cronos boasts to users that using it’s platform is a low cost and fast alternative to the larger blockchains. But the reality is, Cronos is probably just another basic player in the space trying to cash in on NFTs and the Metaverse (as in, they aren’t any faster than other blockchains boasting these same features). Cronos is fully decentralized, open source, and claims to be energy efficient using the same proof of stake consensus method used by Ethereum.
One thing that is worth noting however, is that the interoperability with the Cronos blockchain can be very helpful for those who work on multiple blockchains. Cronos functions on an IBC protocol, and therefore can work with any other blockchain that uses this protocol. So besides just Cosmos, Cronos can also work with Terra(Luna) blockchain and many others which can make it easier for those who wish to create NFTs or use Cronos for business purposes.
Cronos has its own native token, called CRO, which is also the native token of crypto.com. There is a bridge between the two, allowing users to easily transfer CRO from the blockchain to the Crypto.com website for exchange or use with their financial services.
Currently, you can use CRO to purchase NFTs, build in the metaverse, or invest in DeFi investment pools. The team behind Cronos however, boasts that someday there will be even more functions and uses for CRO, thus making it an altcoin which closely rivals Binance Coin.
Who Invented Cronos?
Cronos was invented by Crypto.com as the native token for their exchange which is quickly rising in popularity. Crypto.com was originally a company named Monaco which was founded in 2016, but as soon as they were able to buy the Crypto.com domain in 2018, they changed their name to what it is today.
Crypto.com currently employs a team of over 4000 people around the globe. The CEO is Kris Marszalek and he founded the company with Gary Or. Crypto.com has offices all over the world and is perhaps best known for their partnership with Visa and the cryptocurrency debit and credit card options they offer to users.
Why is Cronos Special?
In a world where there are so many alternatives to Ethereum, why would you ever select to add Cronos to your portfolio? Well, many other investors have asked the same question, and the company has said that the main reason they believe Cronos will be the next big thing is because Cronos is a financial company as well.
Unlike other altcoins, crypto.com is legally registered in several countries. They also have insurance to back all of their customer funds. This provides users of the website much more safety and security than many other exchanges available—especially because DeFi projects are frequently subject to hacks.
Which brings up the next positive attribute, because they are such a large company, and they employ so many security specialists, you can rest easy knowing your money is safer on the Crypto.com platform than many of the other cryptocurrency exchanges available because of their high security levels. (Although this doesn’t keep your money safe from an inside job like the BXH hack, so keep that in mind).
When you buy Cronos, you are able to invest (without speculative trading) directly on the crypto.com website. You are also able to earn rebates when you sign up for, and use, their debit or credit card. Crypto.com also has a special offering known as Crypto Pay which allows businesses an easy way to accept cryptocurrency payments from customers.
Should You Invest in Cronos?
Honestly, Cronos is a decent altcoin project. Many of the altcoin projects investors come across are pure scams, and Cronos is definitely not that. With a reputable company behind the project, as well as insurance, Cronos is likely one of the safer cryptocurrency investments on the market.
Don’t rush out and buy some just yet however, as just because Cronos is reputable and usable doesn’t mean it is a good investment on your money. Currently, many people who invested in Ethereum and Bitcoin are making large returns for HODLing the coin. There is no guarantee Cronos will ever gain the same popularity and rise to the same heights.
But, what you can do with the Cronos coin is invest it in the meantime using the Crypto.com platform, meaning that it may actually be worthwhile to acquire some—especially if you are a business looking to accept cryptocurrency payments.
Either way, remember that any investment in cryptocurrency is risky, and even though Cronos has a financial company behind them, there is no guarantee that you won’t lose your entire investment. Cronos is simply less risky than some other cryptocurrency investments available.
So if you are thinking of adding Cronos to your portfolio, do your research on the company and decide if you will use their services. If you do plan to use their services then Cronos is likely a good investment for you.
Those looking for something to HODL however, may want to check out other cryptocurrencies with more straightforward track records such as Bitcoin and Ethereum. Find out more about these, and other cryptocurrencies, on MintDice.com.