Crypto.com

Crypto.com is a cryptocurrency exchange company based in Singapore. As of May 2022, the company had 50 million customers and 4,000 employees.[2] The exchange issues its own exchange token named Cronos (CRO).[3]

Crypto.com
TypePrivate company
IndustryFinancial services
FoundedJune 2016 (2016-06)
FoundersBobby 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 was founded in 2016 under the name "Monaco" by Bobby Bao, Gary Or, Kris Marszalek, and Rafael Melo. The company rebranded in 2018 after purchasing the Crypto.com domain, reportedly valued between $5-10 million. Crypto.com offers a range of services including an app, exchange, wallet, and NFT marketplace. The company also issues its own token, Cronos (CRO). However, the company faced a series of challenges, including a $15 million Ether hack in January 2022, significant layoffs due to a downturn in the crypto market, and a $1 billion loss in Cronos' value in November 2022. Despite these setbacks, Crypto.com has secured regulatory approvals in several regions, acquired two South Korean startups, and engaged in high-profile promotional activities, including a $700 million naming deal for Los Angeles's Staples Center.

History

The company was initially founded in Hong Kong[4] by Bobby Bao, Gary Or, Kris Marszalek, and Rafael Melo in 2016 as "Monaco".[5] 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.[6][7]

Crypto.com is operated by Foris DAX Asia, a Singapore-based company[8] that's a subsidiary of Foris DAX MT (Malta) Limited.

The company which had 10 million users in February 2021, reported more than 50 million active users as of May 2022.[9]

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.[10]

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.[11]

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.[12]

In November 2022, the exchange's token, Cronos, lost approximately $1 billion in value.[3] 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.[13][14] On 14 November, Marszalek, the firm's CEO, assured users that the exchange was functioning as normal.[3]

Products
Cronos Token
Denominations
CodeCRO
Previous namesCrypto.com coin
Development
White paperWhitepaper
Initial releaseDecember 21, 2018 (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.[15][16][17][18]

In May 2022, they partnered with Shopify to allow businesses which use the e-commerce platform to accept payments in cryptocurrency.[19]

Promotional activities

Crypto.com signed actor Matt Damon to serve as Crypto.com's brand ambassador in October 2021.[15][20]

In September 2021, the company became Paris Saint-Germain F.C. official cryptocurrency platform. The partnership included the release of exclusive Non-Fungible Tokens on Crypto.com's NFT platform.[21]

In September 2021, Philadelphia 76ers announced Crypto.com as official jersey patch partner.

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.[22][23]

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.[24] It signed a sponsor deal for the 2022 FIFA World Cup.[25]

Regulations

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.[26] 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.[27] 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.[28]

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.[29] It received regulatory approval to operate in Cyprus from the Cyprus Securities and Exchange Commission.[30] 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.[31]

See also

References
  1. "Foris DAX Asia Pte. Ltd.'s Privacy Notice". Crypto.com. 30 July 2021.
  2. Primack, Dan (2022-05-06). "Exclusive: Crypto.com passes the 50 million user mark". Axios. Retrieved 2022-05-07.
  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. Lang, Hannah (February 14, 2022). "How Crypto.com is betting big on sports partnerships to reach a billion users". Reuters.
  5. Kaur, Jaspreet (November 17, 2021). "Who Owns Crypto.com, As Staples Center Re-Named in Landmark Deal?". hitc.com. Retrieved January 1, 2022.
  6. 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.
  7. 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.
  8. "Singapore clamps down on ads for 'highly risky' crypto trading". Nikkei Asia. Retrieved 2022-02-04.
  9. Chipolina, Scott; Agini, Samuel; Oliver, Joshua; Germano, Sarah (May 26, 2022). "Crypto and sports bet on winning combination to woo fans". The Financial Times.
  10. 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.
  11. "Crypto.com laid off 260 employees — then quietly let go of hundreds more". The Verge. Retrieved 2022-08-19.
  12. Hiken, Asa. "Inside Crypto.com's Marketing Meltdown". AdAge. Retrieved 10 October 2022.
  13. 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.
  14. 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.
  15. Witt, Steven (May 19, 2022). "Crypto.com Spent Its Way to the Top. Then the Market Crashed. Now What?". GQ. Retrieved November 6, 2022.
  16. Sabrina Toppa (March 16, 2022). "Crypto.com Unveils Exchange in the U.S." TheStreet. Retrieved 2022-08-29.
  17. "7 Best Crypto Wallets of August 2022". Money. August 5, 2022.
  18. Takahashi, Dean (September 1, 2021). "Heavy Metal teams up with Crypto.com to create collectible NFTs". VentureBeat.
  19. Gladwin, Ryan (May 17, 2022). "Why Shopify is doubling down on crypto—even after the crash". Fast Company.
  20. 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.
  21. "CRYPTO.COM becomes PSG Official Cryptocurrency platform". 2021-09-10. Retrieved 2023-03-15.
  22. "Staples Center to become Crypto.com Arena in reported $700 million naming rights deal". ESPN. November 16, 2021. Retrieved November 17, 2021.
  23. Hirtenstein, Anna (November 17, 2021). "Staples Center in L.A. to Be Renamed Crypto.com Arena". Wall Street Journal. Retrieved November 18, 2021.
  24. Kelly, Dylan (January 29, 2022). "LeBron James' Foundation Partners With Crypto.com to Provide Blockchain-Related Education". Hypebeast. Retrieved August 18, 2022.
  25. "FIFA signs sponsorship deal with Crypto.com for Qatar World Cup". Reuters. 2022-03-22. Retrieved 2023-01-03.
  26. Chong, Claudia (June 22, 2022). "MAS issues 3 crypto licence in-principle approvals, including to Crypto.com". The Business Times (Singapore).
  27. "Crypto.com enters South Korea via acquisitions". TechCrunch. Retrieved 2022-08-09.
  28. Park, Kate. "Singapore-based cryptocurrency exchange Crypto.com enters South Korea via acquisitions | TechCrunch". Retrieved 10 August 2022.
  29. Nicolle, Emily (August 17, 2022). "Crypto.com Receives Registration as UK Cryptoasset Provider". Bloomberg.
  30. Erazo, Felipe (July 22, 2022). "Crypto.com Obtains Regulatory Approval from CySEC". Finance Magnates.
  31. "Crypto.com chooses Paris for European headquarters". reuters.com. 2022-10-12.
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