Starting off as any other crypto exchange in 2016, Crypto.com (formerly Monaco) has come a long way to become one of the major fintech platforms out there in the crypto market. It was founded in Singapore by Bobby Bao, Gary Or, Kris Marszalek, and Rafael Melo. Currently, it provides multiple financial products & services to its customers in the Crypto/NFT space. Their vision is to accelerate the world’s transition to cryptocurrency and they are playing an important role in worldwide adoption. The native coin of Crypto.com called Cronos (CRO) recently surpassed US$3 billion in total value locked (TVL) in less than five months after the launch of its native blockchain. Even after facing a lot of public backlash and controversies in the past, it has emerged as one of the favorites due to the convenience and accessibility it provides to the customers especially the ones who are new to this space.
In this blog, we are going to explore how Crypto.com makes money and what is the secret to its success.
How Does Crypto.com Make Money?
Checkout the list of products on https://crypto.com/ and one thing you will quickly notice that it's a one stop crypto shop. You can do a lot within one ecosystem and the most convenient way possible.
- Crypt/NFT Trading Fees: Crypto.com allows customers to buy, sell, hold and trade crypocurrencies and NFTs through its separate marketplaces. Each trade is charged with a fee that is the major revenue source for the company.
- Listing Fee: To list coins instantly, they charge listing fees from crypto startups. It's usually a one time fee and can be negotiated with some other mutually beneficial partnership.
- Currency Exchange Fees: When you cash out from the platform, a currency exchange fees is charged based upon your location and preferred currency.
- Interest On Loans: Crypto.com provide instant crypto loans and then they earn from the interest charged on the loan repayment.
- Staking Interest: When you stake your crypto using Crypto.com Earn service, they share a part of it. That is why most DeFi platofmrs provide you better returns on your crypto staked in liquidity pools.
- Crypto Debit Cards: Each transaction on Crypto.com debit card, merchant pays an interchange fees which is normally around 1%.
Crypto.com's Secret To Success
The company has gained popularity and trust quickly and now stands with the big league of exchanges like Binance, Coinbase, FTX, etc. There are three major reasons for its success:
- Aggressive Marketing: Crypto.com is a marketing case study for Web3 startups. 📖 In October 2021, they had created a $100 Million Brand Film starring Matt Damon, directed by Academy Award-winner Wally Pfister. They have done in a ton of partnerships with other brands and sponsorship events including FIFA World Cup 2022 in Qatar. We could see the whole Stadium decked up with their logo and promotional ads. They also won a $700-million naming rights of the Los Angeles’ Staples Center rebranded as Crypto.com arene. It is the home to the famous L.A. Lakers basketball team. The list just goes on and on..
- Wide Range of Products & Services: Crypto.com has a wide range of financial products for beginners and pro investors. A user gets everything under one roof. Based on CRO Token holdings, users are rewarded with offers and discounts as per their tier. This works out great for them to retain existing customers. Even though they did try to reduce these rewards recently and faced a lot of backlash again.
- Convenience: Security vs convenience is a debatable topic but most people would always choose the latter for obvious reasons. A great product is easy to use and it should be able to generate a habit in its users so that they come back again and again. Crypto.com is the best example which has cracked these two qualities.
Do you guys use Crypto.com? Please comment below!
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I totally forgot they were Monaco!
Smart business move changing the name.
When you've got a domain like that, you may as well maximise it.
I don't have an account with them myself, but the Cronos network still intrigues me.
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Yes. Acquiring the juiciest domain name in crypto has given them an edge over others. As per media reports, they bought it for at least $5 Million dollars.
Same! They are doing everything possible to expand the ecosystem even though they fuck it up sometimes. And they definitely have the deep pockets for the big marketing campaigns they do.
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Crypto.com is one the best exchange out there with amazing security and fast site, even though I prefer another binance to it but each time I used it everything always go smoothly
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I am not so sure about the security but it's definitely fast and easy to understand. As compared to Coinbase and Binance, it's a bit cheaper too I guess.
I cannot use Crypto.com or Coinbase since I live in India so have to use Binance. Hopefully in the future.
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I never understand why anybody will stake crypto with an exchange that will take a decent percentage
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Only if they are a Crypto noob. 🙈😂
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Crypto.com has done aggreesive marketing and this hs made the exchange so popular these days but we can't ignore that they are doing good with innovation.
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Yes. They are creating huge demand and getting people into crypto. That's commendable
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You need a smartphone to sign up.
easy peasy Japanesey.
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I will agree with the marketing part. I see alot of their ads on brave. As I said in the past, any serious project will invest heavily in marketing to push their brand. So kudos to them
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Yeah mate. Learn to build. Learn to Sell. If you can do both, you will be unstoppable.
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90% of their money is literally printing CRO coins and trying to keep it at the highest value possible hehe 😉
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So that's where the marketing money comes from. They have been dumping on CRO Holders. 😂😂
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I don't have an account with them but the more recent changes to the credit card and levels make me skeptical. Is the aggressive marketing making them lose that much money and I can see the usual fees just like other exchanges?
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It could be possible but it's normal to update the rewards and charges on Debit/Credit Cards. They will have to work on it and provide more reasons for existing customers to keep using their product. There has to be a balance between acquiring new customers and retaining the existing customers.
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I tried signing up with them because of SPS but changed later changed my mind. :)
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Why? Did you face any issues? I still buy SPS on Hive-Engine.
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I think its the requirements in signing up. I don't want to provide more personal information. lol.
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Haha. Smart! 🙈
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It's all about the fees. I hate to say it but this buiness want active traders hodling is not profitable.
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You are right. Unless people trade or stake, there is not much revenue for them. That is why they keep on coming with new schemes to keep the traders busy.
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Trick question, it doesn't. This has been big news they rorted everyone!
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😂😂 Most of the money is going into marketing. They do get some backlash every now and then. Must be hard for business.
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Same as Binance or any other CEX...
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Yes, you can say that. This is how most CEXs make money.
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Indeed
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I have not used their services ever, but reading this post I should think about an account.
Nice review.
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Try and let me know how does it work for you. All the best mate. Thanks a lot.
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Interesting article, I didn't know they were doing so well, and CROS is doing amazing. Good alpha
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Thank you so much @shortsegments. :)) Although CRO has tanked a bit but we all know that we are in a semi-bear market so it is expected. Hopefully, they come up with better products and services that could help CRO with the price rise.
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I've never used crypto.com looks interesting! Thanks.
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It is available for US citizens. Which one do you use?
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I don't have an account with them myself but might give it a try. I don't like messing with CEX too much but it's always nice to know the alternatives out there in case I need to bring some fiat in our out
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Do you know it's available in Brazil? I don't have many options so I have to stick with Binance to invest.
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A lot of users got disappointed with CDC's recent announcement regarding slashing rewards rate. I think that was the 3rd announcement they made that disappointed their users. 1st was the MNC and CRO merge, 2nd-3rd was reward rates reduction. IMO they should've learned from their past mistakes. All those aggressive marketing tactics will be worth shit if a lot of users bail out of the project. One thing is for sure though, CDC still has the best reward debit cards out there. Plus the supercharger & syndicate events are still worth it to HODL CRO. Haven't tried their DEFI staking yet though
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I agree with you mate. If they can't keep the existing customers happy, there's no point in getting more.
Thanks for the review. Do you use their card?
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Yup, the spotify & netflix CB's got me. I just supercharge them and get free crypto. Binance has similar reward system but it's not yet available in most countries though.
!PIZZA
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Yes. My interest in using their services primarily centers around their Android App on my smart phone.
While I am personally not too keen on using my smart phone for crypto transacting purposes (I don't trust the security), I have frankly been very impressed with both how well it works and how extensive the list is of supported cryptos.
Hard to pass up this convenience factor. So ... I just have adopted the same practice I have with any other CEX. I conduct trades there, then move my crypto off to my Ledger-backed wallets.
You mention their fees for service. If I had one "wish list" item, I would like to see more transparency in what these fees are, when conducting an exchange. I have not found an easy way to do this, although I have come up with a workaround that gets me by ...
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I use them but I hate their app. it's so unfriendly.
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I decided to invest part of my money in the stock market in order to fulfil the goals I had set for myself. Because I was new to the cryptocurrency market, I depended primarily on the website crypto news as my major source of information. As a consequence, my ability to make sensible decisions and respond properly to diverse circumstances has substantially improved.
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That's true. Multi millions for sure if not billions. It's insane. Thanks a ton for dropping by!
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