Crypto.com is a leading cryptocurrency exchange and payment platform that offers a wide range of services to its users. The company was founded in 2016 by Bobby Bao, Gary Or, Kris Marszalek, and Rafael Melo, and is headquartered in Hong Kong.
Crypto.com has over 80 million registered users in more than 90 countries. The company has seen significant growth in recent years, driven by its expanding product offerings and user-friendly platform.
What Is Crypto.com?
Crypto.com is a prominent FinTech company that operates a centralized exchange, which facilitates the purchase and sale of various cryptocurrencies. The exchange runs on its native token, known as CRO. Users can earn discounts and rewards, based on the number of staked tokens they hold.
One of the unique features of Crypto.com is its debit card, which allows users to earn cashback rewards while using it for payments in the physical world. Additionally, users can earn interest on their crypto holdings by staking their tokens. Moreover, they can use their existing holdings as collateral to apply for instant loans.
Crypto.com not only allows users to trade cryptocurrencies and NFTs but also offers derivatives trading, such as futures and options, with leverage of up to 50x. Its platform is powered by the Crypto.org EVM Chain, which is its own public blockchain. As a result, developers can create and release new products on its blockchain, expanding the Crypto.com ecosystem.
Apart from its desktop wallet that enables users to store their coins and access various DeFi protocols, Crypto.com offers businesses access to its payment platform. This feature allows merchants to receive payments in over 30 different tokens.
Users can access the Crypto.com platform through its website or mobile applications, available for Android and iOS devices. The company is focused on providing a user-friendly platform, attracting a large user base, and expanding its ecosystem through new product offerings.
Quick History
Crypto.com, headquartered in Singapore, was founded in 2016 by Kris Marszalek, Rafael Melo, Bobby Bao, and Gary Or. The quartet set out to build a cryptocurrency company that would help drive mass adoption and usage of digital assets.
When it comes to being an entrepreneur, Marszalek is certainly the most experienced of the group. In 2004, he started Starline Polska, a consumer electronics design studio and manufacturer that he managed to grow to $81 million in annual revenue within three years.
Since the products he sold were manufactured and sold in Asia, Marszalek ended up frequently traveling to Asia and even set up local subsidiaries in China as well as Hong Kong. This eventually led him to launch BeeCrazy.hk in 2010, an eCommerce platform that primarily served customers in Hong Kong. Yet again, he managed to grow the company to millions in revenue, which ultimately culminated in a $21 million exit to iBuy Group Limited in 2013.
Marszalek went on to join iBuy Group as its COO where he oversaw the firm’s IPO on the Australian Securities Exchange (ASX) in December of the same year. The company eventually rebranded into Ensogo, which Marszalek led as CEO from August 2014 onwards.
Unfortunately, his stint at Ensogo didn’t end as well as the previous business endeavors he was involved in. Two years after assuming the CEO role, in June 2016, Marszalek stepped down from his position. Then, just days later, Ensogo abruptly shuttered its operations in Southeast Asia. Both buyers and sellers were blindsided by the immediate shutdown and left with hundreds of thousands of dollars in owed cash.
What made the whole situation worse – and possibly illegal – was that Ensogo, in April, had announced that it intended to expand its marketplace across the globe after experiencing strong growth in Southeast Asia.
Marszalek had since come out to defend himself, stating that the decision to shut down was against his wishes. But given that he did not hold a board seat and his ownership stake only amounted to three percent, his wishes were essentially overturned.
While Ensogo was struggling to keep its business afloat, Marszalek was already working on bigger and better things. He managed to convince Melo, Bao, and Or, who he knew from his Ensogo days, to join him.
In May 2017, after over a year in stealth, Marszalek and the team unveiled their new company Monaco. Their plan was to offer a Visa debit card and settle transactions in Monaco’s native currency MCO. In order to fund the development, the team issued an initial coin offering, which allowed them to raise $26.7 million. The single-largest investor contributed 5,005 ETH, which was equal to around $2 million at the time.
To further build up hype for its product, Monaco managed to close deals with various exchanges such as Bittrex, Binance, and others that went on to list its coin. Regardless, the rollout of its card wasn’t without issues.
In early October, Bloomberg ran a piece that debunked Monaco’s repeated claims of an existing partnership with Visa. Around the same time, the company removed one of its key roadmap features, smart asset contracts, from its roadmap, a move that caused the price of MCO to crash by more than 40 percent.
Given Marszalek’s troubled past, many began to lose faith in the project and speculated that Monaco was nothing but a scam. Luckily, the team was able to pull through, and in November, announced that it received the green light from regulators in Singapore. However, the announcement just meant that the partnership
How Crypto.com Makes Money
Crypto.com is a cryptocurrency exchange and financial services company that allows users to buy, sell, and trade cryptocurrencies such as Bitcoin, Ethereum, and many others. It was founded in 2016 and has since become one of the leading cryptocurrency exchanges in the world. The company offers a wide range of services, including trading, staking, lending, borrowing, and investing, among others. But how does Crypto.com make money? In this article, we will explore the various ways in which Crypto.com generates revenue.
Trading Fees
One of the primary ways in which Crypto.com makes money is through trading fees. Whenever a user buys or sells a cryptocurrency on the platform, Crypto.com charges a fee. These fees can vary depending on the type of trade, the volume of the trade, and other factors. However, the standard trading fee on Crypto.com is 0.4% for takers and 0.2% for makers. This means that Crypto.com makes a small percentage of every transaction that occurs on its platform.
Crypto.com also offers discounts on trading fees for users who hold its native cryptocurrency, CRO. For example, users who hold 10,000 CRO or more can get a 25% discount on trading fees. This incentivizes users to hold and use CRO, which can help Crypto.com generate more revenue from trading fees.
Staking Rewards
Another way in which Crypto.com makes money is through staking rewards. Staking is the process of holding a cryptocurrency in a wallet for a certain period of time to support the network and earn rewards. Crypto.com allows users to stake a variety of cryptocurrencies, including CRO, Bitcoin, and Ethereum, among others.
When users stake cryptocurrencies on Crypto.com, they earn rewards in the form of additional cryptocurrencies. For example, if a user stakes CRO, they may earn additional CRO as a reward. Crypto.com generates revenue by taking a percentage of the rewards earned by users who stake cryptocurrencies on its platform. This incentivizes users to stake their cryptocurrencies on Crypto.com, which can help the company generate more revenue.
Interest on Deposits
Crypto.com also offers interest on deposits of certain cryptocurrencies. Users can earn interest on their deposits of cryptocurrencies such as Bitcoin, Ethereum, and many others. The interest rate varies depending on the cryptocurrency and the amount deposited, but it can range from 2% to 14% per year.
Crypto.com generates revenue by lending out the cryptocurrencies that users deposit on its platform. This is similar to how traditional banks generate revenue by lending out the money that customers deposit in their accounts. Crypto.com lends out the cryptocurrencies to borrowers who need them for various purposes, such as trading or hedging. By earning interest on the cryptocurrencies it lends out, Crypto.com is able to generate revenue and offer interest to its users.
Credit Card Fees
Crypto.com also offers a credit card that allows users to spend their cryptocurrencies at merchants that accept Visa. The credit card offers cashback rewards in the form of CRO, and users can earn up to 8% cashback on their purchases. Crypto.com generates revenue by charging fees to merchants who accept payments from the Crypto.com credit card. This is similar to how traditional credit card companies generate revenue by charging fees to merchants who accept their credit cards.
Investment Services
Crypto.com also offers investment services that allow users to invest in a variety of products, such as cryptocurrency indexes, exchange-traded funds (ETFs), and tokenized stocks. Crypto.com generates revenue by charging fees for these investment products. For example, users may be charged a management fee or a performance fee for investing in an ETF or a cryptocurrency index. By offering investment services, Crypto.com is able to generate revenue and provide users with a wider range of investment options.
Crypto.com Business Model
Crypto.com’s business model is based on providing a comprehensive suite of cryptocurrency and financial services to its users. The company’s goal is to make it easy for anyone to access and use cryptocurrencies, regardless of their level of technical expertise.
Here are some of the key elements of Crypto.com’s business model:
- User acquisition: Crypto.com offers a range of incentives and rewards to attract new users to its platform. For example, the company offers sign-up bonuses, referral bonuses, and cashback rewards for using its Visa card.
- Product diversification: Crypto.com offers a wide range of products and services to meet the needs of different types of users. These include a cryptocurrency exchange, a mobile wallet app, a Visa card, and a range of financial services such as lending and interest-earning accounts.
- Competitive pricing: Crypto.com aims to offer competitive pricing for its products and services to attract and retain users. The company’s trading fees are among the lowest in the industry, and it offers a range of discounts and incentives to encourage trading volume.
- Partnerships: Crypto.com has formed partnerships with a range of companies to expand its offerings and reach new users. These partnerships include collaborations with Visa, Ledger, and various DeFi platforms.
- Regulatory compliance: Crypto.com operates in a highly regulated industry and is committed to maintaining compliance with relevant laws and regulations. The company has obtained licenses and approvals from a range of regulatory bodies, including the Hong Kong Securities and Futures Commission and the Australian Securities and Investments Commission.
Technology Used by Crypto.com
Crypto.com uses a variety of technologies to power its platform and provide a seamless user experience. Here are some of the key technologies used by Crypto.com:
- Cloud Infrastructure: Crypto.com uses cloud infrastructure to ensure that its platform is highly available and scalable. The company uses Amazon Web Services (AWS) to host its services and relies on Kubernetes for container orchestration.
- Blockchain Technology: As a cryptocurrency exchange, Crypto.com relies heavily on blockchain technology. The company uses various blockchain networks to facilitate transactions and store user data. For example, Crypto.com uses the Ethereum network for its MCO and CRO tokens.
- Mobile App Development: Crypto.com’s mobile app is a critical component of its platform, and the company has invested heavily in mobile app development. The app is available on both iOS and Android and offers a range of features, including trading, sending and receiving cryptocurrency, and accessing the Crypto.com Visa card.
- Cybersecurity: As a cryptocurrency exchange, Crypto.com is highly focused on cybersecurity. The company uses a range of technologies and practices to protect its platform and user data. These include SSL encryption, two-factor authentication, and cold storage for user funds.
- Artificial Intelligence: Crypto.com uses artificial intelligence (AI) to improve its platform and user experience. For example, the company uses AI to detect fraudulent activity and to personalize its app’s user interface based on user behavior.
Top 5 Alternatives to Crypto.com
While Crypto.com is a leading player in the cryptocurrency space, there are several alternative platforms that offer similar services. Here are five alternatives to Crypto.com:
- Binance: Binance is one of the largest cryptocurrency exchanges in the world, offering a wide range of trading pairs and low trading fees. The company also offers a Visa card that allows users to spend their cryptocurrency at any merchant that accepts Visa.
- Coinbase: Coinbase is a popular cryptocurrency exchange that is known for its user-friendly interface and strong security features. The company offers a range of trading pairs and allows users to buy and sell cryptocurrency using a variety of payment methods.
- Kraken: Kraken is a well-established cryptocurrency exchange that offers low trading fees and a wide range of trading pairs. The company also offers a range of advanced trading features, including margin trading and futures contracts.
- Gemini: Gemini is a cryptocurrency exchange that is focused on security and regulatory compliance. The company is regulated by the New York State Department of Financial Services and offers a range of trading pairs and a mobile app for trading on the go.
- Bitstamp: Bitstamp is a European cryptocurrency exchange that offers a range of trading pairs and low trading fees. The company has been in operation since 2011 and is known for its strong security features.
Summary
Crypto.com is a financial technology (FinTech) firm that offers a centralized exchange where users can buy and sell numerous cryptocurrencies, a debit card, and other financial products.
The company generates revenue through a range of fees, including trading fees, interest on loans, interchange fees, withdrawal fees, currency conversion fees, sales fees from its NFT marketplace, and selling stock in the firms it invests in.
Since its inception in 2016, Crypto.com has expanded significantly, amassing over 80 million users and becoming one of the top players in the crypto industry.
