Wikipedia

Crypto.com

Crypto.com is a cryptocurrency exchange company based in Singapore that offers various financial services, including an app, exchange, and non-custodial DeFi wallet, NFT marketplace, and direct payment service in cryptocurrency. As of June 2023, the company reportedly had 80 million customers and 4,000 employees.[2] The exchange issues its own exchange token named Cronos (CRO).[3]

Crypto.com
Company typePrivate
IndustryCryptocurrency
FoundedJune 2016; 7 years ago (2016-06)
Founders
  • Bobby Bao
  • Gary Or
  • Kris Marszalek
  • Rafael Melo
Headquarters
1 Raffles Quay, #25-01 Singapore 048583[1]
ProductsCryptocurrency exchange, cryptocurrencies
Number of employees
4,000 (2022)
Websitecrypto.com

Crypto.com's user base increased from 10 million users in early 2021[4] to 80 million by mid-2023[5], while its workforce exceeded 4,000 employees.[6] Regarding sponsorships and marketing activities, Crypto.com attracted actor Matt Damon as a brand ambassador[7], collaborated with the soccer club Paris Saint-Germain F.C.[8], and secured the naming rights for the Staples Center, now known as the Crypto.com Arena, in a 20-year agreement valued at $700 million.[9]

History

The company was initially founded in Hong Kong[10] by Bobby Bao, Gary Or, Kris Marszalek, and Rafael Melo in 2016 as "Monaco".[11] In 2018, the company was renamed as Crypto.com following a purchase of a domain owned by cryptography researcher and professor Matt Blaze. Domain sellers valued the domain at US$5–10 million.[12][13]

Crypto.com is operated by Foris DAX Asia, a Singapore-based company[14] that's a subsidiary of Foris DAX MT (Malta) Limited.[citation needed]

The company which had 10 million users in February 2021, reported more than 50 million active users as of May 2022[4] and 80 million users as of June 2023.[5]

In January 2022, Crypto.com was the victim of a hack totaling US$15 million in stolen Ether. After some users reported suspicious activity on their accounts, the company paused withdrawals. Withdrawal services were later restored alongside a statement from the company that no customer funds were lost.[15]

On August 18, 2022, it was reported that Crypto.com had been quietly letting go of hundreds of employees, beyond its initial 5% layoff in June, due to the downturn in the cryptocurrency market.[16]

By October 10, 2022, it was reported that Crypto.com had laid off over 2,000 employees (reportedly 30% to 40% of their staff) since May, due to the cryptocurrency market downturn.[17]

In November 2022, the exchange's token, Cronos, lost approximately $1 billion in value.[18] The decline was caused in part due to concerns after the collapse of FTX, whose executive team was revealed to have used its native token, FTT, to prop up the balance sheet of a sister company and to have allegedly engaged in other fraudulent behaviors.[19][20] On 14 November, Marszalek, the firm's CEO, assured users that the exchange was functioning as normal.[18]

On June 9, 2023, Crypto.com announced plans to shut down its institutional exchange in the United States by June 21, citing low demand from large financial institutions. The company's main retail trading service was unaffected.[citation needed] The change caused speculation that the Crypto.com Arena in Los Angeles would be renamed, but the company denied this.[21][5]

In December 2020, Crypto.com acquired The Card Group Pty Ltd, securing an Australian Financial Service License. This acquisition was approved by Australia’s Foreign Investment Review Board, enabling Crypto.com to operate within Australia's regulatory frameworks.[22][non-primary source needed]

In December 2021, Crypto.com executed a sale and purchase agreement to acquire Nadex, a U.S.-based retail-focused, CFTC regulated online exchange, and the Small Exchange, known for offering simpler futures products.[23][24]

Products

Cronos Token
Denominations
CodeCRO
Previous namesCrypto.com coin
Development
White paperWhitepaper
Initial releaseDecember 21, 2018; 5 years ago (2018-12-21)
Development statusActive
Ledger
Supply limit30,263,013,692
Valuation
Exchange rateFloating
Website
Websitecrypto.org

Crypto.com services include an app, exchange, wallet and NFT marketplace.[25][26][27][28]

In May 2022, they partnered with Shopify to allow businesses which use the e-commerce platform to accept payments in cryptocurrency.[29]

Promotional activities

Crypto.com signed actor Matt Damon to serve as the company's brand ambassador in October 2021.[25][30]

In September 2021, the company became soccer club Paris Saint-Germain F.C.'s official cryptocurrency platform. The partnership included the release of exclusive non-fungible tokens on Crypto.com's NFT platform.[31]

In September 2021, the Philadelphia 76ers announced Crypto.com as their official jersey patch partner.[32]

In November 2021, the company acquired the naming rights to Los Angeles's Staples Center, renaming it Crypto.com Arena in a 20-year deal reported to be valued at US$700 million.[33][9]

In early 2022, the company announced a partnership with the LeBron James Family Foundation to provide educational resources focused on blockchain-related topics to students of the I Promise School in Akron, Ohio.[34] It also signed a sponsorship deal for the 2022 FIFA World Cup.[35]

Regulations

USA

In 2021, Crypto.com entered into a $216 million deal with IG Group, acquiring stakes in a US futures exchange and a binary trading group. This move aims to enable Crypto.com to offer derivatives and futures to US customers, an area often challenging for crypto exchanges due to the strict regulations surrounding these investment products. The acquisition includes the North American Derivatives Exchange (Nadex) and a 39% stake in Small Exchange, focusing on retail traders. This development is part of Crypto.com's broader strategy to comply with US regulations while expanding its service offerings.[36]

Australia

In December 2020, the company acquired an Australian Financial Service License by purchasing The Card Group Pty Ltd. This acquisition, approved by Australia’s Foreign Investment Review Board.[37]

The Australian Financial Service License enables Crypto.com to expand its services in the Australian market, adhering to the country's financial regulations. This move also facilitates the introduction of new offerings, such as launching its debit card in Australia.[38]

Asia

The Monetary Authority of Singapore announced that it had given in-principle approval to the company for a Major Payment Institution License, allowing it to provide digital payment token services in the country.[39] In August 2022, Crypto.com acquired two South Korean startups - the payment service provider PnLink Co., Ltd and the virtual asset service provider OK-BIT Co., Ltd.[40] With these acquisitions, the company secured registration licenses to provide financial services under South Korea's electronic financial transaction act and as a virtual asset service provider.[41]

Europe

The company received approval from the United Kingdom's Financial Conduct Authority to be registered as a crypto asset service provider in August 2022.[42] In July 2022, it received regulatory approval to operate in Cyprus from the Cyprus Securities and Exchange Commission.[43] In September 2022, Crypto.com received the approval of the French authorities, and a month later announced plans to establish a European headquarters in Paris and invest 150 million euros in the French division.[44]

See also

References

  1. ^ "Foris DAX Asia Pte. Ltd.'s Privacy Notice". Crypto.com. 30 July 2021.
  2. ^ Pequeño IV, Antonio (2023-06-09). "Crypto.com Arena Keeping Controversial Name Despite Exchange Shut Down". Forbes. Retrieved 2023-09-28.
  3. ^ Shukla, Sidhartha; Ghosh, Suvashree (14 November 2022). "Crypto.com's Sinking Token Stirs Fresh Anxiety After FTX Wipeout". Bloomberg. Retrieved 14 November 2022.
  4. ^ a b Chipolina, Scott; Agini, Samuel; Oliver, Joshua; Germano, Sarah (May 26, 2022). "Crypto and sports bet on winning combination to woo fans". The Financial Times.
  5. ^ a b c Pequeño IV, Antonio (2023-06-09). "Crypto.com Arena Keeping Controversial Name Despite Exchange Shut Down". Forbes. Retrieved 2023-09-28.
  6. ^ Daniel, Alex (18 August 2022). "Crypto.com, Genesis and Coinbase: The crypto winter has cost more than 4,000 jobs — here's who's cutting". FN London.
  7. ^ Echarri, Miquel (2022-07-26). "From Matt Damon to Gwyneth Paltrow: Celebrities who pushed crypto now paying for it in popularity". EL PAÍS English. Retrieved 2024-04-16.
  8. ^ Livemint (2021-09-10). "Crypto.com strikes multi-year sponsorship deal with football club PSG". mint. Retrieved 2024-04-16.
  9. ^ a b Hirtenstein, Anna (November 17, 2021). "Staples Center in L.A. to Be Renamed Crypto.com Arena". Wall Street Journal. Retrieved November 18, 2021.
  10. ^ Lang, Hannah (February 14, 2022). "How Crypto.com is betting big on sports partnerships to reach a billion users". Reuters.
  11. ^ Kaur, Jaspreet (November 17, 2021). "Who Owns Crypto.com, As Staples Center Re-Named in Landmark Deal?". hitc.com. Retrieved January 1, 2022.
  12. ^ Robertson, Adi (July 6, 2018). "Crypto.com, the multimillion-dollar cryptography domain whose owner refused to sell, has been sold". The Verge. Retrieved January 1, 2022.
  13. ^ Szalay, Eva; Germano, Sara; Grimes, Christopher (November 20, 2021). "Rise of Crypto.com: from university blog to home of the LA Lakers". Financial Times. Retrieved January 1, 2022.
  14. ^ "Singapore clamps down on ads for 'highly risky' crypto trading". Nikkei Asia. Retrieved 2022-02-04.
  15. ^ Lau, Yvonne (January 18, 2022). "Crypto.com says 'all funds are safe' after alleged hack, but analysis shows $15 million of Ether is gone". Fortune. Archived from the original on January 18, 2022. Retrieved January 19, 2022.
  16. ^ "Crypto.com laid off 260 employees — then quietly let go of hundreds more". The Verge. Retrieved 2022-08-19.
  17. ^ Hiken, Asa. "Inside Crypto.com's Marketing Meltdown". AdAge. Retrieved 10 October 2022.
  18. ^ a b Shukla, Sidhartha; Ghosh, Suvashree (14 November 2022). "Crypto.com's Sinking Token Stirs Fresh Anxiety After FTX Wipeout". Bloomberg. Retrieved 14 November 2022.
  19. ^ Ge Huang, Vicky; Osipovich, Alexander; Kowsman, Patricia (10 November 2022). "FTX Tapped Into Customer Accounts to Fund Risky Bets, Setting Up Its Downfall". The Wall Street Journal. Retrieved 10 November 2022.
  20. ^ Michaels, Dave; Yu, Elaine; Ostroff, Caitlin (12 November 2022). "Alameda, FTX Executives Are Said to Have Known FTX Was Using Customer Funds". The Wall Street Journal. Retrieved 12 November 2022.
  21. ^ McMenamin, Dave (2023-06-09). "Sources: Crypto.com move won't affect L.A. arena". ESPN.com. Retrieved 2023-09-28.
  22. ^ Commission, Australian Competition and Consumer (2021-09-09). "Proposed amalgamation of BPAY, eftpos and NPPA". www.accc.gov.au. Retrieved 2024-01-20.
  23. ^ "Crypto.com forges deal to buy two of IG Group's US trading assets". www.ft.com. Retrieved 2024-01-20.
  24. ^ "IG Group Acquires Small Exchange from Crypto.com's Parent". Financial and Business News | Finance Magnates. 2023-04-03. Retrieved 2024-01-20.
  25. ^ a b Witt, Steven (May 19, 2022). "Crypto.com Spent Its Way to the Top. Then the Market Crashed. Now What?". GQ. Retrieved November 6, 2022.
  26. ^ Sabrina Toppa (March 16, 2022). "Crypto.com Unveils Exchange in the U.S." TheStreet. Retrieved 2022-08-29.
  27. ^ "7 Best Crypto Wallets of August 2022". Money. August 5, 2022.
  28. ^ Takahashi, Dean (September 1, 2021). "Heavy Metal teams up with Crypto.com to create collectible NFTs". VentureBeat.
  29. ^ Gladwin, Ryan (May 17, 2022). "Why Shopify is doubling down on crypto—even after the crash". Fast Company.
  30. ^ Bhasin, Kim (October 28, 2021). "Matt Damon is the Face of Crypto.com". New York. Bloomberg News. Archived from the original on 2021-10-28.
  31. ^ "CRYPTO.COM becomes PSG Official Cryptocurrency platform". 2021-09-10. Retrieved 2023-03-15.
  32. ^ "76ers, Crypto.com Announce Jersey Patch Partnership". nba.com. September 21, 2021. Retrieved April 12, 2024.
  33. ^ "Staples Center to become Crypto.com Arena in reported $700 million naming rights deal". ESPN. November 16, 2021. Retrieved November 17, 2021.
  34. ^ Kelly, Dylan (January 29, 2022). "LeBron James' Foundation Partners With Crypto.com to Provide Blockchain-Related Education". Hypebeast. Retrieved August 18, 2022.
  35. ^ "FIFA signs sponsorship deal with Crypto.com for Qatar World Cup". Reuters. 2022-03-22. Retrieved 2023-01-03.
  36. ^ "Crypto.com forges deal to buy two of IG Group's US trading assets". www.ft.com. Retrieved 2024-02-16.
  37. ^ Commission, Australian Competition and Consumer (2021-09-09). "Proposed amalgamation of BPAY, eftpos and NPPA". www.accc.gov.au. Retrieved 2024-02-16.
  38. ^ "Crypto.com Secures Australian Financial Service License". Yahoo Finance. 2020-12-02. Retrieved 2024-02-16.
  39. ^ Chong, Claudia (June 22, 2022). "MAS issues 3 crypto licence in-principle approvals, including to Crypto.com". The Business Times (Singapore).
  40. ^ "Crypto.com enters South Korea via acquisitions". TechCrunch. Retrieved 2022-08-09.[permanent dead link]
  41. ^ Park, Kate. "Singapore-based cryptocurrency exchange Crypto.com enters South Korea via acquisitions | TechCrunch". Retrieved 10 August 2022.
  42. ^ Nicolle, Emily (August 17, 2022). "Crypto.com Receives Registration as UK Cryptoasset Provider". Bloomberg.
  43. ^ Erazo, Felipe (July 22, 2022). "Crypto.com Obtains Regulatory Approval from CySEC". Finance Magnates.
  44. ^ "Crypto.com chooses Paris for European headquarters". reuters.com. 2022-10-12.
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