Executive Summary:
Crypto.com is a leading FinTech company that operates a centralized cryptocurrency exchange, offering users the ability to trade dozens of digital assets. Beyond trading, the platform provides a range of financial products, including a debit card, loans, and an NFT marketplace.
Crypto.com generates revenue through various streams, such as trading fees, interest on loans, interchange fees, withdrawal and currency conversion charges, NFT marketplace sales fees, and returns on investments in crypto startups.
Founded in 2016, Crypto.com has rapidly grown into one of the most prominent crypto platforms globally, boasting over 10 million users.
What Is Crypto.com?
Crypto.com is a FinTech company specializing in cryptocurrency services through its centralized exchange. Users can buy, sell, and trade dozens of cryptocurrencies on the platform, which is powered by its native token, CRO (Crypto.com Coin). By staking CRO, account holders can unlock various discounts and rewards, depending on their staking tier.
Key Offerings:
- Debit Card: Crypto.com offers a Visa debit card that provides cashback rewards, subscription reimbursements (e.g., Spotify, Netflix), and discounts on services like Airbnb and Expedia.
- Staking & Interest Earnings: Users can stake CRO and other cryptocurrencies to earn interest.
- Loans: Instant loans are available using crypto holdings as collateral.
- Derivatives Trading: Supports futures, options, and leveraged trading (up to 50x).
- NFT Marketplace: A platform for buying, selling, and trading non-fungible tokens (NFTs).
- Crypto.org EVM Chain: Crypto.com’s public blockchain enables DeFi applications and developer innovations.
- Merchant Payments: Businesses can accept payments in over 30 cryptocurrencies.
👉 Explore Crypto.com’s latest features
How Crypto.com Started: Company History
Crypto.com was founded in 2016 by Kris Marszalek, Rafael Melo, Bobby Bao, and Gary Or. Marszalek, a seasoned entrepreneur, previously led successful ventures in eCommerce and consumer electronics before pivoting to cryptocurrency.
Milestones:
- 2017: Launched as Monaco, raising $26.7 million in an ICO.
- 2018: Acquired the Crypto.com domain for $12 million and rebranded.
- 2019: Introduced the Crypto.org Chain and CRO token.
- 2020-2021: Expanded globally, launched NFT marketplace, secured high-profile sponsorships (e.g., Formula 1, UFC).
- 2021: Acquired naming rights for Los Angeles’ Staples Center in a $700 million deal.
How Crypto.com Makes Money
1. Interchange Fees (Debit Card)
Crypto.com earns revenue from interchange fees (typically ~1%) charged to merchants when users make purchases with their Visa debit card. Higher-tier cards offer greater cashback rewards (1%-8%), funded partly by these fees.
2. Trading Fees
The exchange employs a maker-taker fee model:
- Makers (add liquidity) pay lower fees.
- Takers (remove liquidity) pay slightly higher fees.
Discounts apply based on CRO staking and trading volume.
3. Interest on Loans
Users can borrow funds using crypto as collateral. Interest rates vary based on loan amount, collateral type, and staking tier.
4. NFT Marketplace Fees
- Primary Sales: 15% fee on NFT sales.
- Secondary Sales: 5% fee on resales.
5. Investments (Crypto.com Capital)
A $200 million fund invests in blockchain startups, generating returns via equity sales or IPOs.
👉 Discover Crypto.com’s investment opportunities
Funding, Revenue & Valuation
Crypto.com raised $26.7 million in its 2017 ICO. As a private company, it does not disclose revenue or valuation publicly.
Frequently Asked Questions (FAQs)
1. What is Crypto.com’s native token?
CRO (Crypto.com Coin) powers the Crypto.org Chain and provides staking rewards, trading discounts, and card benefits.
2. How does Crypto.com’s debit card work?
The Visa debit card offers cashback, subscription reimbursements, and other perks. Rewards depend on the card tier, which is tied to CRO staking amounts.
3. What are the trading fees on Crypto.com?
Fees follow a maker-taker model, with discounts for CRO stakers. Taker fees start at 0.40%, while maker fees begin at 0.04%.
4. Can I earn interest on Crypto.com?
Yes, users earn interest by staking CRO and other supported cryptocurrencies.
5. How does Crypto.com’s NFT marketplace compare to OpenSea?
Crypto.com charges higher creator fees (15%) but offers integration with its ecosystem, including payments in CRO.
6. Is Crypto.com regulated?
Crypto.com holds licenses in multiple jurisdictions, including an Australian Financial Services License (AFSL).
👉 Learn more about Crypto.com’s ecosystem
This deep dive into Crypto.com’s business model highlights its diversified revenue streams and rapid growth in the cryptocurrency space. Whether you're a trader, investor, or crypto enthusiast, Crypto.com offers a comprehensive suite of financial products tailored to the digital economy.