What happened
Crypto.com Coin (CRO 3.02%) has surged more than 9% during the 24-hour period ending at 10:30 a.m. ET today. This surge has firmly placed CRO as the 13th-largest cryptocurrency by market capitalization, just below Dogecoin (DOGE 1.80%) and Shiba Inu (SHIB 2.28%), in the 11th and 12th spots, respectively.
Today's surge appears to be a continuation of strong momentum from last week. Last Wednesday, Crypto.com signed the largest-ever naming rights deal in history, paying $700 million to put its name on what is now the Staples Center in Los Angeles (home of the Lakers of the National Basketball Association) for the next two decades.
Image source: Getty Images.
So what
Crypto.com's token has ascended the market cap rankings in incredible fashion. Investors appear to like the catalyst this naming deal provides the brand. The Singapore-based crypto trading and investing platform is one of many in this space, and this naming rights deal appears to be viewed by bulls as a key differentiator. The hope is that this long-term marketing arrangement could make Crypto.com one of the go-to places for crypto investors to get into the game.
The Staples Center won't officially transition to the Crypto.com Arena until Christmas Day. But that is the day the arena will host one of the most-watched games in basketball, shining the spotlight directly on the Crypto.com brand.
Now what
Cryptocurrencies such as the CRO token remain highly speculative. The fact that this naming rights deal has boosted the value of CRO by more than 70% over the past week alone is incredible. Should Crypto.com have another week like this, it's entirely possible this token could surpass Dogecoin and Shiba Inu in value by next week.
Investors in the crypto space appear to be valuing cryptocurrencies in accordance with the value their underlying networks can provide users. The hope is that this naming rights deal will result in a surge of activity on the Crypto.com platform. Time will ultimately tell how successful this deal is in creating value.
For most companies, such a large naming-rights deal could be a massive liability that investors might have difficulty with. But the current crypto market continues to be red-hot, rewarding such high-profile maneuvers right now.
