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The Crimson Dragon provides Anna an Attack and Magic Attack bonus. It is a decent way to inflict fire damage, while also having a chance to burn the target. Dragon Flame is an added bonus, but it may berserk the enemy.
The weapon grants fire resistance and freeze resistance, but it removes some water resistance. It boosts fire skills, but due to the fact Anna does not have any fire-oriented skills (excluding the ones she shares with the other characters), the bonus will mostly go unused.