Home Crypto Why Crypto.com Coin, Harmony, and Alien Worlds All Jumped Today

Why Crypto.com Coin, Harmony, and Alien Worlds All Jumped Today

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Why Crypto.com Coin, Harmony, and Alien Worlds All Jumped Today

What occurred 

Some high-profile altcoin cryptocurrencies are having an excellent day earlier than the Thanksgiving vacation within the U.S. as merchants bid up speculative property. 

The largest transfer immediately was Harmony One (CRYPTO:ONE), which jumped as a lot as 33.9% within the final 24 hours and is up 30% as of 12:45 p.m. ET. Alien Worlds (CRYPTO:TLM) rose as a lot as 19.2% and is now up 13.3%, whereas Crypto.com Coin (CRYPTO:CRO) rose 15.9% and is now up 11.8%. 

Graphic of cryptocurrency chart with 3D objects on top.

Image supply: Getty Images.

So what 

Crypto.com’s advertising marketing campaign continues to repay as the worth of its cryptocurrency rises. Earlier this week, Crypto.com signed a 20-year $700 million deal to call the previous Staples Center in Los Angeles. The deal could sound large, however when you think about that the market capitalization of the Crypto.com Coin is now about $24 billion and climbing quick, it appears to be like like an excellent transfer simply to get publicity. 

Jobless claims have been additionally at their lowest degree since 1969 at 199,000 final week, a bullish indicator for client spending. This may assist cryptocurrencies by giving folks extra disposable earnings to take a position or drive inflation, which some suppose could be hedged by cryptocurrencies.

The different large issue that may drive volatility in asset prices this week is the lengthy Thanksgiving vacation. Traders who handle billions of {dollars} usually take day off throughout every week like this and that may result in elevated volatility. In a risky market like cryptocurrency, this could make swings wild on a day-to-day foundation. 

Now what 

Outside of the elevated consciousness that Crypto.com acquired this week, there are not any large information drivers for cryptocurrencies. The labor market continues to get higher, inflation continues to be a possible difficulty, and builders are nonetheless constructing new methods to construct utility for cryptocurrencies long-term. 

What we do not but know is what number of cryptocurrencies will probably be beneficial because the trade matures. I believe it is seemingly that just a few cryptocurrencies that may construct a big consumer and developer base will final, which is why there’s an arms race occurring immediately amongst altcoins. The winners have quite a bit to realize whereas the losers may go to zero. 

It’s far too early to see how this performs out, however constructing a consumer base is why Crypto.com is spending $700 million to construct consciousness for its model. What’s sure for now could be that volatility will proceed and for immediately that is working in these altcoins’ favor. 

This article represents the opinion of the author, who could disagree with the “official” suggestion place of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis — even one in every of our personal — helps us all suppose critically about investing and make choices that assist us develop into smarter, happier, and richer.

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