The cryptocurrency market is buzzing after the unexpected announcement that the upcoming Truth Social ETF will allocate a surprising 5% of its holdings to Crypto.com’s CRO token, dwarfing its 2% allocation to XRP. This bold move comes with a direct endorsement from Donald Trump, who reportedly stated, “I like CRO, I like Kris,” referring to Crypto.com CEO Kris Marszalek.
This significant embrace of CRO by the Trump organization, known for its extensive real estate and sports investments, signals a deepening foray into the digital asset space. Donald Trump himself is known to hold the Solana-powered meme coin $TRUMP, while his wife Melania holds $MELANIA. Notably, the Truth Social ETF will dedicate 8% of its portfolio to Solana. Furthermore, Trump’s sons have reportedly invested in American Bitcoin, a crypto mining firm, and WLF World Liberty Financials, a US Treasury-backed stablecoin heavily supported by UAE.
CRO’s Puzzling Resurgence: A Look Beyond the Headlines
Despite a flurry of positive PR, including new investments and partnerships in the UAE and now this ETF inclusion, Crypto.com’s CRO token has struggled to regain its previous highs in last 12 months. Trading at nearly 10% of its all-time high of $0.969 set on November 24, 2021, many in the crypto community question its intrinsic value.
Unlike some established cryptocurrencies such as Ethereum (ETH), Cardano (ADA), XRP, Solana (SOL), Dogecoin (DOGE), or even Pepe (PEPE), CRO appears to lack a robust community or significant utility among technical developers. Its primary function remains largely confined to the Crypto.com platform, offering users reduced trading fees and card benefits in exchange for locking up their tokens.
The Marketing Machine: Crypto.com’s Extensive Sponsorships
Crypto.com has become synonymous with aggressive marketing and high-profile sponsorships across the globe. Their extensive portfolio includes:
- Crypto.com Arena in Los Angeles
- Formula 1
- UFC
- Sponsorships of numerous European football teams
- FIFA World Cup
- UAEFA
- Champions League
- Aston Martin F1
- PGA / LIV golf tours
Despite this massive brand presence, Crypto.com’s exchange volume doesn’t even rank among the top 10 cryptocurrency exchanges, raising questions about the return on investment for such ventures.
The substantial 5% allocation of CRO within the Truth Social ETF has led to speculation within the market. While the announcement briefly saw CRO jump 20%, many analysts predict this surge may be short-lived for a token facing questions about its long-term viability and lacking strong backing from the broader developer community. The true motivations behind this significant investment by the Trump organization remain a subject of considerable debate in the crypto world.
