In this new series, we compare some key crypto assets and how they have fared recently. While doing so, we ask this question - if an investor has Rs.1,000 to spare today, how can he/she allocate the capital between these assets? Today, we aim to compare Binance Coin (BNB) and Cronos (CRO). Both are tokens backed by global crypto exchanges with wide adoption.
Binance is the largest cryptocurrency exchange in the world and offers a bouquet of services for its users, as part of the Binance ecosystem. Binance ecosystem is powered by its native cryptocurrency – Binance Coin (BNB). Binance coin was initially launched on the Ethereum blockchain using the ERC-20 standard. However, it now runs on Binance's own blockchain, the Binance Smart Chain.
BNB can be exchanged for other cryptocurrencies on a variety of exchanges. It can be used to pay for Binance exchange transactions with users receiving a discount for doing so. BNB employs an auto-burn system that adjusts the amount of BNB that will be burned based on the price of BNB and the number of blocks generated on the BNB Smart Chain (BSC) during the quarter. This provides the BNB community with greater transparency and predictability.
Binance can process about 1.4 million transactions per second. It also offers one of the lowest transaction fees in the crypto world. With a total supply of 200 million, BNB is currently ranked 4th with a market capitalization of $63 billion.
Crypto.com is a cryptocurrency exchange that offers trading, investing, staking, wallets, NFTs, and other services. The native cryptocurrency of Crypto.com is Cronos (CRO). The CRO is an ERC20 token. It gives users access to a variety of tiered benefits within the Crypto.com ecosystem, with the goal of allowing users to pay for real-world purchases with cryptocurrencies by converting it into fiat currency in real-time.
CRO provides its users with access to exclusive rewards and discounts available through its flagship loyalty card product. It also offers benefits such as lower trading fees, higher lending rewards, and more within the Crypto.com ecosystem. CRO is used as the primary payment method for transactions on Crypto.org chain and Cronos blockchain. Users can also stake CRO to have access to Crypto.com VISA cards, earn rewards, discounts etc.
The total supply of CRO coins is limited to 30 billion. This follows the burning of 70 billion CRO tokens, the largest such burn in the history of cryptocurrencies. With a total market capitalization of $7.4 billion, CRO stands 20th by market cap today.
BNB is down 26% in 2022 compared to CRO which is down by nearly 50%. BNB is mostly used to pay transactions and other related fees on the Binance Smart Chain. The majority of CRO demand and utility comes in the form of "perks." It is primarily derived from credit card "perks" (cash backs) and staking "perks" (higher yield).
Recent performances of BNB and CRO
Source: TradingView, Binance, Kucoin
While BNB focuses on expanding its use cases through partnerships to attract more users and developers, CRO has focused on using celebrity/influencer marketing. CRO has gained through association with celebrities/brands including Matt Damon, F1, UFC, and Paris Saint Germain.
Overall, we believe that BNB is part of a more mature ecosystem that drives value through multiple ways and hence we suggest a 65% share to BNB and the remaining 35% to CRO.
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Disclaimer: This article was authored by Giottus Crypto Exchange as a part of a paid partnership with The News Minute. Crypto-asset or cryptocurrency investments are subject to market risks such as volatility and have no guaranteed returns. Please do your own research before investing and seek independent legal/financial advice if you are unsure about the investments.