What happened
Some high-profile altcoin cryptocurrencies are having a great day before the Thanksgiving holiday in the U.S. as traders bid up speculative assets.
The biggest move today was Harmony One (ONE 0.21%), which jumped as much as 33.9% in the last 24 hours and is up 30% as of 12:45 p.m. ET. Alien Worlds (TLM) rose as much as 19.2% and is now up 13.3%, while Crypto.com Coin (CRO -0.97%) rose 15.9% and is now up 11.8%.
Image source: Getty Images.
So what
Crypto.com's marketing campaign continues to pay off as the value of its cryptocurrency rises. Earlier this week, Crypto.com signed a 20-year $700 million deal to name the former Staples Center in Los Angeles. The deal may sound big, but when you consider that the market capitalization of the Crypto.com Coin is now about $24 billion and climbing fast, it looks like a great move just to get publicity.
Jobless claims were also at their lowest level since 1969 at 199,000 last week, a bullish indicator for consumer spending. This could help cryptocurrencies by giving people more disposable income to invest or drive inflation, which some think can be hedged by cryptocurrencies.
The other big factor that can drive volatility in asset prices this week is the long Thanksgiving holiday. Traders who manage billions of dollars often take time off during a week like this and that can lead to increased volatility. In a volatile market like cryptocurrency, this can make swings wild on a day-to-day basis.
Now what
Outside of the increased awareness that Crypto.com got this week, there aren't any big news drivers for cryptocurrencies. The labor market continues to get better, inflation continues to be a potential issue, and developers are still building new ways to build utility for cryptocurrencies long-term.
What we don't yet know is how many cryptocurrencies will be valuable as the industry matures. I think it's likely that only a few cryptocurrencies that can build a large user and developer base will last, which is why there's an arms race going on today among altcoins. The winners have a lot to gain while the losers could go to zero.
It's far too early to see how this plays out, but building a user base is why Crypto.com is spending $700 million to build awareness for its brand. What's certain for now is that volatility will continue and for today that's working in these altcoins' favor.
