What happened
Cronos (CRO +0.77%), formerly called Crypto.com Coin, has drawn significant attention from investors of late. At 11:30 a.m. ET on Friday, Cronos had appreciated 4.5% over the past 24 hours, bringing its weekly gain to more than 15%.
CRYPTO: CRO
Key Data Points
This strong move higher really began on Wednesday, following an announcement that Cronos would be an official sponsor of the 2022 FIFA World Cup in Qatar. This is its latest major marketing partnership, following a series of other high-profile deals in recent months.
Image source: Getty Images
So what
Specifics are light in terms of how much Cronos will pay to be featured prominently at the various soccer stadiums for this year's World Cup. However, previous deals have racked up quite the price tag for Cronos' marketing endeavors. These include the $700 million paid for the naming rights to what was the Staples Center in Los Angeles (now the Crypto.com Arena) and other sponsorship deals with the Formula 1 motorsports series, the UFC fighting series, and the Australian Football League.
Cronos' business model appears to be tied closely to enticing retail investors, users, and developers to its platform to spur growth. Notably, following these key marketing deals, Cronos has seen its total value locked (TVL) surge from around $5 million in early November to approximately $3.5 billion today.
Now what
Using these metrics, it's clear that Cronos' marketing efforts have worked. But the ongoing cost of these sponsorship deals might outweigh the benefits, should interest in the crypto sector wane. Cronos appears to be among the higher-leverage options for investors to consider in the crypto world in this regard. Should interest continue to surge higher, Cronos aims to be at the center of attention.
However, the flip side is also true: If user and developer interest wanes, investors could be left holding the bag on a project that can't sustain its marketing costs with its revenue.
