Why Crypto.com Coin Is Soaring Today
The cryptocurrency sector as a whole is having a bad day today, but the Crypto.com Coin (CRYPTO: CRO) had other plans. The token showed a 24-hour gain of 21.4% at 12:20 p.m. ET on Wednesday, as the Crypto.com company made a move more commonly associated with traditional businesses.
I'm talking about Crypto.com's sponsorship of the sports arena currently known as the Staples Center. The privately held, Singapore-based cryptocurrency trading specialist is forking over $700 million for a 20-year naming rights contract, according to many independent reports. The name change will take effect on Christmas Day, with the hometown Los Angeles Lakers hosting the Brooklyn Nets in a high-profile holiday showcase for the National Basketball Association.
The Crypto.com token is a cryptocurrency, not a stock, so it might seem strange that the token is moving on the type of news that would normally affect stock market assets. But this token plays many crucial roles in Crypto.com's actual operations, so it stands to reason that the cryptocurrency should gain in value as the underlying business operation grows. This sponsorship should certainly drive more attention to the Crypto.com platform, which may translate into positive financial results.
Source Fool.com