Trump Media has announced a new deal with Crypto.com, which will see the creation of a new company. This venture will be used to accumulate and store Cronos, the exchange’s native currency. In response to this news, the value of the token has shot up significantly, spelling even more connections between Trump and the crypto sector.
Good Timing?
Now is as good a time as any for this sort of development, as cryptocurrency has seen wins like never before. Not only have legacy tokens like Bitcoin and Ethereum seen massive price spikes and greater mainstream acceptance, but you are tokens are also snapping up a lot of attention. Specifically, there’s been a development of use cases for all types of cryptos. The gambling sector, for example, has heavily embraced cryptocurrency, and this is reflected in its ongoing trends. Both in the US and beyond, a myriad of platforms are emerging to meet this need. As an article from gambling expert Wilna van Wyk explains, sites for Irish players are gaining more attention and the same pattern is seen all over the world.
As such, it is beneficial for a crypto exchange to not only partner with a powerful corporation like Trump Media but also plan towards the future of its native currency. This will be done by its new venture, Trump Media Group CRO Strategy, Inc., which will be listed on the NASDAQ. The tagline for this new company is, unsurprisingly, “Make CRO Great Again”. The sole aim of this company will be to act as a treasury for the Cronos token. In fact, their commitment to this path is so deep that partners will pledge to lock up their tokens for at least a year.
And just how much is this business venture starting off with? As per the official press release, its war chest currently boosts $1.4 billion, which therefore gives it access to up to $5 billion in a line of credit. A billion dollars of this initial war chest will be an allotment of Cronos. The remaining $400 million will be in cash, which offers liquidity as the venture begins.
The Effects of the Deal
Reports also suggest that both companies have invested a financial stake in each other, therefore deepening their alliance. Crypto.com has bought $50 million in stock from Trump Media, and that company, in turn, has bought $105 million worth of CRO tokens and integrated them into its flagship social Media platform, Truth Social.
The value of CR0 has jumped about 25% since the announcement of this deal, and it will only become more popular as the deal commences. This is yet another effort from US President Donald Trump to align himself with the crypto industry. Famously, he presented himself as the ideal candidate for the industry last year and, since he entered office, has done everything from hosting a crypto summit to launching his own token.
Because it is still in the early stages, it’ll take a while to know just how successful this venture will be and what its impact on the wider industry might become.
