Should You (or Anyone) Buy Cronos (CRO)?

Many or all of the products here are from our partners that compensate us. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page.


  • Cronos is the native token for the platform and smart contract ecosystem.
  • The slump in crypto prices and trading could present challenges for Cronos.
  • The decision to buy crypto depends on your financial situation as well as your long-term belief in a project.

Cronos' decision to cut rewards put the cat among the pigeons.

Cronos is the native token for the popular crypto app and exchange, Its price soared along with many cryptos last year, with an increase of over 850%. This was partly a result of the platform's heavy promotional activity. For example, it bought the naming rights to the Staples Center -- now the Arena. Matt Damon was also the face of a high-profile advertising campaign.

However, Cronos slipped from its position as a crypto darling in early May after it arbitrarily slashed its staking rewards. quickly backtracked on the decision and announced much less drastic rewards revisions. All the same, the move put a big dent in investor confidence, as we'll discuss in this article.

Cronos basics

Cronos is a utility token for the platform. Users can get fee discounts by paying with CRO and also stake the tokens to qualify for benefits. These include higher interest rates on deposits and better benefits on the prepaid debit cards. The more CRO staked, the better the rewards. 

  • Date launched: 2018 
  • Market cap: $4.9 billion (CoinMarketCap, May 17).
  • Availability: Some major U.S. cryptocurrency exchanges. Several crypto exchanges choose not to list competitor tokens.

Formerly known as the Coin, Cronos rebranded last year to reflect the fact that is more than a crypto exchange. It's also a programmable blockchain that hosts a broad ecosystem of applications. It's one of several Ethereum (ETH) alternatives that have gained traction as developers look for less congested blockchains with lower costs. The Cronos smart contract blockchain works with both the Ethereum and Cosmos (ATOM) ecosystems.

Should you buy it?

There are several factors to take into account before you buy crypto: Your financial situation, your investment strategy, and your belief in that particular project's potential. 

1. Your financial situation

The golden rule of crypto investing is to only spend money you can afford to lose. That way, if things go wrong it won't completely derail your finances. Moreover, prioritize goals that will build financial stability in the long term before you buy any crypto. For example, if you're trying to pay down debt or build an emergency fund, these should take priority over cryptocurrency investments. 

Our top crypto play isn't a token - Here’s why

We’ve found one company that’s positioned itself perfectly as a long-term picks-and-shovels solution for the broader crypto market — Bitcoin, Dogecoin, and all the others. In fact, you've probably used this company's technology in the past few days, even if you've never had an account or even heard of the company before. That's how prevalent it's become.

Sign up today for Stock Advisor and get access to our exclusive report where you can get the full scoop on this company and its upside as a long-term investment. Learn more and get started today with a special new member discount.

Get started

2. How it fits with your investment strategy

Everybody has their own reasons for buying crypto. What matters is that you understand the risks involved and know how to minimize them. If you aren't comfortable with high-risk assets, crypto may not be right for you.

It's also important to be clear about how CRO might fit with the rest of your crypto portfolio and your other investments. Crypto assets are high risk and volatile investments, and there's a lot we don't know about how they will evolve. As such, experts recommend you only put a small percentage of your total portfolio into crypto.

3. How Cronos might perform long term

Cronos has some major positives. It's a well-established smart contract platform that's already attracted a decent number of projects. And the exchange has been relatively successful in attracting crypto investors. However, the decision to change the staking rewards earlier this year raises questions about how sustainable it all is. 

Sure, the exchange did dramatically tone down its proposed changes, but there's no guarantee it won't attempt to change staking benefits again further down the line. CRO's price may also drop in six month's time when the reduced rewards rates actually kick in. There's also concern over why it decided to slash rewards. Some fear has overextended itself with heavy promotional spending. 

Bear in mind that the climate has become more risk averse and some of the heat has gone out of the crypto industry, which could be a problem for crypto platforms. Other crypto exchanges such as Coinbase are already slowing their hiring efforts due to the slump in trading volume. As an investor, it's worth considering how the platform might survive a prolonged dip in both prices and crypto trading.

Bottom line and Cronos have a lot going for them as a crypto exchange and a smart contract platform. However, in spite of heavy promotional activity, it isn't topping the bill in either category. According to CoinMarketCap, is the 15th biggest exchange in terms of trading volume. And DeFi Llama puts Cronos in seventh place in terms of the amount of money on its platform. 

As with any crypto, it's important to do your own research to evaluate how it might perform in the long term. For Cronos, some areas to pay attention to include how it stands up against the competition and what might happen if crypto continues to underperform.

Buy and sell cryptocurrencies on an expert picked exchange

There are hundreds of platforms around the world that are waiting to give you access to thousands of cryptocurrencies. Our experts have done the research to pick out the select few top crypto exchanges today.

To help you get started, we're sharing one of our expert's top picks for free -- simply click here to start your crypto journey today.

Our Research Expert

Related Articles

View All Articles Learn More Link Arrow