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.
