Cronos has been labeled the next BNB, but is that really the case? This is why today we’re going to be stacking up Crypto.com coin Cronos versus Binance’s BNB to see which one comes out on top. And there can only be one winner. And to do this, I’m going to be comparing these two projects head-to-head in seven different categories.
The first is the exchanges themselves, the utility of each project, the founders of each project, the supply and burn ratio, the user base or community, and the defi ecosystem. And lastly, the growth strategy.
Introduction of both tokens
To comprehend utility, we need to get a better understanding of what actually the CRO and BNB tokens do. BNB has been on the list of the top five largest cryptocurrencies now for over a year. And it’s the token that powers the world’s largest cryptocurrency exchange. BNB was launched as an initial coin offering in July of 2017.
For one Ethereum, you could get 2,700 BNB, or one Bitcoin being worth 20,000 BNB. And it was initially launched on the Ethereum blockchain before migrating over to the Binance Smart Chain that we know today.
Cronos on the other hand is the token that powers the Crypto.com website of a cryptocurrency exchange that offers trade, investing, staking wallets, NFTs, and other services. It went live in February of 2021 and is powered by Ethermint, which allows for the rapid porting of apps and smart contracts from Ethereum, and other EVM-compatible chains.
Well, this gives users a variety of tiered benefits within Crypto.com’s ecosystem with the goal of allowing users to pay for real-world purchases with cryptocurrencies by converting them into fiat currency in real-time. That’s the key thing, in real-time.
Comparison of Exchanges
First up, let’s compare the exchanges themselves. And the reason why we’re doing this is because the more successful in exchanges, the more successful that token is going to be.
BNB is the native token of Binance, the largest cryptocurrency exchange by trading volume. It’s doing more than $13 billion a week in trading volume, and 1.4 million transactions per second. And the house is over 30 million users.
Crypto.com on the other hand has about 350 million in weekly volume. So about 1/4 of trading volume to that of Binance. But it does claim to have 50 million users. However, you can buy almost 400 different cryptocurrencies on binance.com, while on Crypto.com, you can only buy about 200. So half that. So this first category we’re going to have to give to Binance.
Next up are the founders. Let’s stack the founders against one another. The founder of Binance is Changpeng Zhao. He is in the top 125 richest people in the world, and he’s been in blockchain since 2013. One of his first projects was, that he was chief technology officer of the exchange OKCoin.
This is initially what got him to start Binance, because he thought, “Well, I can do this better.” So he raised $15 million, and the rest is history. Now Crypto.com has four different founders, and they originally founded Crypto.com as Monaco in 2016. All three have more than half a decade in blockchain and extensive background in other blockchain industries.
And because of that, when stacking the years in blockchain together across these four founders versus the one that Binance has, I’m going to go ahead, and I’m going to give this to Crypto.com.
The utility of each project
What about the utility? Both tokens offer discounts on their respective exchanges. If you hold even a small amount of BNB on Binance, all of your trading fees will be paid automatically using BNB at a 25% discount, which is a massive discount compared to all of its competitors. It’s also the token needed to pay for gas fees on all the DApps on BSC.
The CRO token also offers discounts, if you’re staking the CRO token on Crypto.com. But the real value of the CRO token comes with the Visa debit card. And with $400 worth of CRO stake, you can take the Ruby Steel card that gives you a 1% cash back, plus a Spotify credit.
And you can get up to a 5% cash back by staking a whopping $400,000 worth of CRO tokens, which comes out to be about what it takes to run a CRO node.
And that $400,000 worth of CRO will also give you extra benefits plus a 6% return per year. You can also boost interest rates on other coins based on your benefits. Lastly, they host massive discounts on popular coin listings where you can buy these coins using CRO tokens.
In terms of utility, we also need to touch on the regulations, which Binance has a poor track record in. Because of these poor regulations, Binance is currently not available in countries like the UK, and USA, and many other countries are investigating Binance.
Crypto.com on the other hand, however, has a much cleaner record with investing huge amounts of investment funds to get ahead in the US market. Binance operates in the US through binance.us, which only has 80 coins listed on it. And also to mention, it’s not available in every state. So in terms of utility, I think Crypto.com has a slight edge on Binance in this one.
Next up, are there defi ecosystems? Decentralized finance is almost a 100 billion sector in crypto. That’s only going to get bigger as the years go on. And it’s a very important aspect of adding utility to any crypto, which is why we’re going to take a look at it today. We’re going to be looking at the number of protocols that are choosing to build on BNB and Cronos, as well as the total value walked up. And that’s a good indicator to see which one is leading the field.
Cronos has over one billion in assets locked up across 70 different projects, while BNB on the other hand is over 400 different projects on it, and almost $6 billion in assets. And this is almost rivaling Ethereum at this point. So this one undoubtedly goes to Binance, and Cronos definitely has their work cut out for them, but it’s something that Cronos can catch up on if enough projects start building in the Cronos ecosystem.
Now let’s look at the current user base. Cronos token has over 50 million users that were registered in 2021, while BNB has just under 30 million. This one definitely goes to Crypto.com, but what’s even more impressive about this is how quickly Crypto.com has been able to amass all of these users, which has almost doubled the users in a fraction of the time.
And I think a large attribution to this has to deal with the Visa debit card and the marketing campaign of Crypto.com
Supply and Burn
With that out of the way, let’s focus on the token supply and burn for both CRO and BNB, as it’s a very important factor in market cap evaluation and future price predictions.
BNB is a highly deflationary token with quarterly burns, which is already brought the token down to 163 million, which is set to deflate another 40% to reach the final amount. So once we come out of the bear market, expect BNB to reach new all-time highs.
On the other hand, the CRO token burned 60 billion tokens last year with another 10 billion locked up in smart contracts set to burn. That being said, there’s still a circulating supply of 25 billion CRO tokens with another five billion left to hit the market.
However, the market cap of the CRO token is still just over three billion compared to the 39 billion of the BNB token. And because BNB has a more aggressive schedule burn with a smaller supply, I’m giving this to BNB.
Growth and Marketing
So going into this last marker, we’re tied three to three right now. So let’s look at each’s growth and marketing strategy. So BNB is really focused on bringing in new investors by creating partnerships to add to the ecosystem that is already been built.
Well, CRO on the other hand is really focused on external marketing, and they’ve done this by renaming the Staples Center. They’ve gotten celebrity marketing on board such as Tom Brady, LeBron James, and Matt Damon, just to name a few. And I don’t really see them stopping anytime soon.
I think that’s how they’ve gotten so many users in such a short timeframe. So I think we’re going to have to give the growth strategy just by the results that have already been accumulated. So that’s Crypto.com’s coin Cronos.
So overall, I think the CRO token has much more room to grow, compare with some investments it made in the stock market, such as Coinbase, and just having a smaller market cap in general, which means that it’s easier to multiply, I gotta give this to Crypto.com.
And I think CRO is going to yield a better return, in the long run, than BNB. However, I think that these projects are neck and neck, and I do consider these both blue chip crypto projects. So thank you for spending your time with me today.
Disclaimer: This is not a sponsored article and this is not financial advice.