CRO Staking Paying Out High Interest
Once Crypto.com staking came online for users, there was a bit of a rush of people transferring CRO to their DeFi wallets for staking. Transfers were slow, taking hours in some cases. Interest rates have been reported as high as 100%. Last night, I saw rates over 60%. Today, rates are nearing 50%.
Crypto.com has set aside 5 Billion CRO tokens to incentivize staking for the next 10 years. Their target interest rate is 20%. The current high interest rates are likely an anomaly as users are being incentivized to stake, which powers network validators in the same way we delegate HP to Witnesses on Hive.
It makes sense that Crypto.com has set aside the reward pool. This ensures that the network has enough people staked to kickstart the network effect. Already, I can tell you that like in many crypto projects, not all wallets are involved maximizing their accounts. It’s a shame for them as this is leaving CRO at bargain prices.
Recently, Crypto.com announced that they had reached 10 Million users. This is a major milestone. However, of the 10 Million users, each would be allocated roughly 3,000 CRO tokens. In our case, the TWM coffers have way more tokens than the 3,000. If the user accounts reach 100 Million, as Crypto.com wants to do, then that allocation goes down to 300 tokens per user. Suffice it to say, between staking for card benefits, staking in the DeFi wallets, and the general utility of the token, there is an opportunity for asymmetric gains over the long haul. Clearly, not all users understand the utility token or how to maximize their benefits with it. Otherwise CRO would be jumping up in price rather than languishing as it is.
As the CRO token slowly slides down from 50% to 20% interest, we will be staking a portion of our portfolio. Earning 20% is great in itself. What makes it better is the 10 year commitment to providing the rewards. Between interest and capital appreciation, an early stake stands to gain considerably.
Our immediate goal is to qualify for the Icy White card, which currently is set at $40K in tokens. The goal is less than a 10X of our current position. Our calculation is that we can reach that in less than 5 years if CRO stays at $0.20 as it is today. However, if the price decides to touch $1 or more, our goal will meet us much sooner.
Our time horizon for CRO is like our horizon for HIVE and LEO. We are looking decades down the road. The only blockchain with a 10 year track record is Bitcoin. We believe that 10 years of incubation by the CRO rewards pool will be enough to turn the CRO ecosystem into a monster. Going for 20 to 30 years, we have no mental references. Let’s see where Bitcoin is when it turns 20 years old. Heck, where will Hive be when it turns 10?
