Anytime I see a legitimate overreaction in the market, I start paying attention.
Does the CRO token fit the description?
A Likely Story
During the FTX meltdown, increased scrutiny befell on a handful of crypto exchanges.
Crypto.com was one of them.
And what people found was a bit disturbing to say the least.
Almost 20% of Cypto.com’s assets were in Shiba Inu?
They sent 4oo million dollars in ETH to Gate.io, which was the wrong address?
Is clown shit like this really endemic of a company who is to be trusted with the custody of our funds?
We sat, and we waited.
An Odd Redemption Arc
Crypto.com CEO Kris Marszelak was very quick and adamant with his responses to these accusations, because after all, it’s the blockchain, so we can prove it was true.
If you care enough to see his responses, as he answers questions from his own employee, see the video below.
I do buy his reasoning, though it doesn’t make me feel any better. But it’s almost as if the “why” doesn’t matter.
Holding 20% SHIB and sending 400 million in ETH to a wrong address is just not something you’re going to come back from easily.
People all over the world took their money off of the Crypto.com exchange. I did too, I had some USDC on there that I save to top up my debit card, but wasn’t going to risk it.
It got so out of hand, they had to pause withdrawals for a moment.
But they did recover. You don’t really make/lose a lot of money by holding other people’s crypto on your exchange anyway.
The media accepted Kris’s answers, and simply went away and found a more compelling story, since there were many to choose from.
But the market thought otherwise. Here is a chart of BNB token compared to CRO.
If you take BNB’s spike out of the equation, peak to trough you’re looking at about a 21% fall in BNB (should have risen IMO), and a 50% fall in CRO.
Bumbling aside, did CRO really deserve to lose 50% of its value?
Or is this the type of overreaction we can leverage to our advantage?
Possible Plan of Attack
Not financial advice, because this is not something I would consider buying now, but if you do feel like this was an overreaction, and think that Kris may be goofy but he’s not a crook, and Crypto.com’s assets and user base alone should boost the CRO token much higher in a bull market…
Then you just got a 50% discount out of nowhere.
These things don’t show up months/years later, so you have to make a note of it now.
For better or worse, exchanges are necessary and see fantastic upside in bull markets.
And when you take profit the way we do, you can afford to take chances on things like this. Not shitcoins, but very very large companies who experienced a possibly unfair sentiment-related discount.
CRO topped out at 88 cents back in November of 2021. Keep in mind however, this is when it still had its Crypto Earn program, which it scrapped just in time before the UST crash and the investigations that followed.
The best thing to do is wait this bear run out. So much can happen. Crypto.com may not even exist anymore when this all hashes out, so WAIT WAIT WAIT.
But keep these occurrences in mind.
When it does come time to accumulate, most people will have forgotten about this crazy discount that occurred back in November of 2022.
But you won’t.