Ha-Crypto Matata: A Guide to Cronos Crypto

Ha-Crypto Matata: A Guide to Cronos Crypto

Crypto.com's new Cronos exchange chain may put the CRO coin on the map. Here's what you need to know about Cronos.

Ha-Crypto Matata: A Guide to Cronos Crypto
Guy Ovadia

Published Apr 26, 2022Updated Apr 26, 2022

Crypto

Crypto

DeFi

DeFi

Technology

Technology

One class of cryptos that have performed exceptionally well is exchange tokens. Exchange tokens are the native cryptocurrencies of centralized exchanges like Binance, FTX, and Crypto.com. As one of the leading companies at the intersection of traditional and alternative finance, Crypto.com's Cronos Chain could make CRO the best exchange coin to invest in.

What is CRO coin?

Running parallel to the Crypto.com Chain is the Cronos chain, an EVM-compatible blockchain that started as a sidechain but is now in its mainnet beta stage.

Recently rebranded as Cronos, CRO is an ERC-20 token that serves as Crypto.com's exchange token and the native coin of the Crypto.org Blockchain. CRO offers lots of utility for traders on Crypto.com. Those who stake CRO receive a high APY and can tap into significant cashback rewards by making purchases with the Crypto.com Visa debit card.

What is Crypto.org Chain?

CRO is the settlement coin on the Crypto.org Chain—Crypto.com's official exchange chain— meaning all transaction fees are paid in CRO, and Crypto.org Chain validators stake CRO and receive CRO rewards as an incentive for securing the network. The Crypo.com Chain was built using the Cosmos SDK, which means that CRO is hooked up to the Cosmos Hub and can quickly bridge assets to any other IBC compatible blockchain.

Crypto.com Pay

The Crypto.com Chain also powers the Crypto.com Pay mobile payment solution. Crypto.com Pay enables the purchase of gift cards for certain retailers using crypto. Anyone who uses the Crypto.com exchange can use this feature to make purchases with the Crypto.com app. Purchases made with Crypto.com Pay also earn users rewards in CRO.

Cronos Blockchain

Running parallel to the Crypto.com Chain is the Cronos chain, an EVM-compatible blockchain that started as a sidechain but is now in its mainnet beta stage. EVM stands for Ethereum Virtual Machine, which is to say that Cronos is compatible with Ethereum smart contracts, thus enabling CRO to be used in DeFi and other dApps on its native blockchain.

Cronos runs on the Ethermint consensus protocol and is secured through a proof of authority consensus mechanism. This means that the Cronos blockchain is still more centralized than the Crypto.com Chain, which has 100 validators at any given moment. However, this isn't such a big deal because it may change with the official launch of the Cronos mainnet.

Cronos NFTs

Since Cronos is EVM compatible, Ethereum-based tokens can be bridged over to the Cronos Chain and vice versa. This means that NFT tokens minted on Ethereum can be transferred to Cronos to take advantage of lower transaction fees. Crypto.com has its own NFT marketplace that exists alongside third-party NFT markets on the Cronos blockchain.

Buying CRO on the Crypto.com app

The best way to buy CRO is by downloading the Crypto.com app and signing up for an account. Crypto.com is a cryptocurrency exchange that also lets you earn yield by staking CRO and other coins on the platform. The Crypto.com App is also where you can apply for and manage your Crypto.com Visa card, which allows you to make purchases with CRO and other cryptocurrencies plus other perks.

cryptocom
Crypto.com

3.5

Crypto

Crypto.com wallet

Crypto.com also has a mobile DeFi wallet, which is a separate application that you can use to buy and store crypto as well as connect to DeFi platforms. Unlike the Crypto.com app, the Crypto.com wallet is non-custodial so it requires you to generate your own wallet and secure your private keys. The Crypto.com wallet is also compatible with Cronos NFTs and you can see your NFTs as well as buy, sell or send NFTs through the mobile wallet.

CRO Tokenomics

The biggest drawback of Cronos is that Crypto.com exerts a high level of centralized control over the blockchain and the supply of CRO. For instance, on February 22, 2021, Crypto.com announced that it would burn 70 billion CRO tokens, with the majority taken out of circulation overnight. While reducing the supply of CRO from 100 billion to 30 billion was great for token holders, Crypto.com still controls 5.9 billion CRO, which is nearly 20% of all CRO in circulation.

Despite how centralization might be a turnoff for some crypto investors, CRO is an exchange token with unparalleled utility. The CRO price is relatively stable and holding CRO allows traders to access lower trading fees on the Crypto.com exchange. CRO holders are also offered lots of incentives to stake their CRO like high APY and access to the Crypto.com VISA and all its perks. CRO clearly has a lot to offer to traders and investors alike, but it could become an even better investment as the Cronos blockchain grows.

Money is numbers and numbers never end.

Innovation and centralization sort of go hand-in-hand. It's objectively true that ambitious endeavors require vast resources to accomplish, but it's also undeniable that a minority of individuals control the most capital. What's your take on decentralization?

Money is numbers and numbers never end.