Crypto.com’s CRO Firm Despite Fears of SEC Lawsuit, Time to Look to Token?

CRO, the native token of the Cronos blockchain, an open-source, interoperable, and Cosmos-based platform, a centralized crypto asset exchange, is stable despite fears from some community members that the United States Securities and Exchange Commission (SEC), the primary regulatory authority that The securities regulator in the country may soon target Crypto.com, a crypto exchange and developer of blockchain.

CRO Steady Despite Fears The SEC May Sue Crypto.com

As of writing June 8, CRO is Business At $0.05889, the USD remained flat against Bitcoin and Ethereum over the past 24-hours.

Nevertheless, the CRO fell by more than 25% in the previous trading day, with an average daily trading volume of $9,098,498.

The double-digit contraction over the past 24 hours comes less than 72 hours after the SEC sued major cryptocurrency exchange Binance, alleging that it was facilitating unregistered securities trading and illegally has been allowing Americans to access the platform since. The SEC has filed 13 charges against the exchange led by Changpeng Zhao.

The regulator also sued Coinbase in federal court in New York, claiming that like Binance, the crypto exchange had listed and profited from trading unregistered securities.

Tokens the SEC claims are securities include ADA, the native currency of Cardano; MANA, the token behind Decentraland; Sand, fueling the ERC-20 token sandbox; ALGO, the native currency of the Algorand proof-of-stake blockchain, and MATIC by Polygon.

stable currency, bus; Near by Near Protocol; CHZ are some of the tokens mentioned by Chiliz and that the SEC alleges are unregistered securities.

Nevertheless, there was no explicit mention of CROs in either of the two lawsuits filed by the regulator against the two largest cryptocurrency exchanges.

Also it should be noted That Crypto.com allows trading of most tokens that the SEC alleges are unregistered securities.

What is common to all tokens the SEC alleges are securities?

Within the Kronos blockchain, CRO is used to pay gas fees. Furthermore, as the platform uses a Proof-of-Stake consensus algorithm, users can stake CRO and receive rewards. In addition, users can access the decentralized finance (DeFi) ecosystem in Cronos by holding CRO.

In 2018, Crypto.com completed its initial coin offering (ICO), raising over $26 million, which also saw the launch of the CRO token.

Observers have noted that all of the SEC’s claims are securities, they all conduct successful crowdfunding.

Additionally, the projects charged with issuing the securities have also pledged to their respective communities that they will continue to improve the underlying protocols through ongoing development.

Along with this, some of their funds were used to complete the marketing.

Furthermore, each of these teams used social media channels and forums such as Twitter, Discord, and others to highlight the benefits of their respective protocols.

Whether a token qualifies as a utility, such as bitcoin, or is unregistered rests with a security judge. Pending a decision, the Exchange may take precautionary measures, including delisting the asset, to ensure compliance with applicable regulations.

Feature image from Canva, chart from TradingView