Company:Crypto.com

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Short description: Singaporean cryptocurrency exchange company
Crypto.com
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 is a cryptocurrency exchange company based in Singapore. 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]

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.[citation needed]

The company which had 10 million users in February 2021, reported more than 50 million active users as of May 2022[9] and 80 million users as of June 2023.[2]

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]

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.[15][16]

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.[17][18]

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.[19][20]

Products

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

Crypto.com offers a range of cryptocurrency-based financial services, including the Crypto.com App for buying and selling cryptocurrencies, the Crypto.com Exchange for advanced traders, a non-custodial Crypto.com DeFi Wallet for holding and earning interest on crypto assets, the Crypto.com NFT marketplace for trading nonfungible tokens, Crypto.com Pay for direct cryptocurrency transactions, and the Crypto.com Visa Card, launched in 2017, which converts cryptocurrencies into fiat for retail purchases through Visa.[21][22][23][24][25][26]

In May 2022, they partnered with Shopify to allow businesses which use the e-commerce platform to accept payments in cryptocurrency.[27]

Promotional activities

Crypto.com signed actor Matt Damon to serve as the company's brand ambassador in October 2021.[21][28]

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.[29]

In September 2021, Philadelphia 76ers announced Crypto.com as their 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.[30][31]

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.[32] It also signed a sponsor deal for the 2022 FIFA World Cup.[33]

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.[34] 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.[35] 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.[36]

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.[37] In July 2022, it received regulatory approval to operate in Cyprus from the Cyprus Securities and Exchange Commission.[38] 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.[39]

See also

References

  1. ↑ "Foris DAX Asia Pte. Ltd.'s Privacy Notice". Crypto.com. 30 July 2021. https://crypto.com/privacy/entity_singapore. 
  2. ↑ 2.0 2.1 IV, Antonio Pequeño. "Crypto.com Arena Keeping Controversial Name Despite Exchange Shut Down" (in en). https://www.forbes.com/sites/antoniopequenoiv/2023/06/09/cryptocom-arena-keeping-controversial-name-despite-exchange-shut-down/. 
  3. ↑ 3.0 3.1 3.2 Shukla, Sidhartha; Ghosh, Suvashree (14 November 2022). "Crypto.com's Sinking Token Stirs Fresh Anxiety After FTX Wipeout". Bloomberg. https://www.bloomberg.com/news/articles/2022-11-14/crypto-com-ceo-says-withdrawals-working-will-continue-to-work?sref=CIpmV6x8. 
  4. ↑ Lang, Hannah (February 14, 2022). "How Crypto.com is betting big on sports partnerships to reach a billion users". Reuters. https://www.reuters.com/technology/how-cryptocom-is-betting-big-sports-partnerships-reach-billion-users-2022-02-14/. 
  5. ↑ Kaur, Jaspreet (November 17, 2021). "Who Owns Crypto.com, As Staples Center Re-Named in Landmark Deal?". https://www.hitc.com/en-gb/2021/11/17/who-owns-crypto-com-as-staples-center-re-named-in-landmark-deal/. 
  6. ↑ Robertson, Adi (July 6, 2018). "Crypto.com, the multimillion-dollar cryptography domain whose owner refused to sell, has been sold". https://www.theverge.com/2018/7/6/17540818/crypto-com-domain-matt-blaze-monaco-mco-cryptology-sale. 
  7. ↑ Szalay, Eva; Germano, Sara; Grimes, Christopher (November 20, 2021). "Rise of Crypto.com: from university blog to home of the LA Lakers". https://www.ft.com/content/8e916586-3662-42cf-91f1-69f7344632b6. 
  8. ↑ "Singapore clamps down on ads for 'highly risky' crypto trading" (in en-GB). https://asia.nikkei.com/Spotlight/Cryptocurrencies/Singapore-clamps-down-on-ads-for-highly-risky-crypto-trading. 
  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. https://www.ft.com/content/d691820e-114d-4927-8bfa-d18acc83379d. 
  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. https://fortune.com/2022/01/18/crypto-com-alleged-hacking-15-million-ether-may-be-gone/. 
  11. ↑ "Crypto.com laid off 260 employees — then quietly let go of hundreds more" (in en-US). https://www.theverge.com/2022/8/18/23309439/crypto-com-layoffs-unannounced-july-august-bear-market?scrolla=5eb6d68b7fedc32c19ef33b4. 
  12. ↑ Hiken, Asa. "Inside Crypto.com's Marketing Meltdown". https://adage.com/article/digital-marketing-ad-tech-news/inside-cryptocoms-marketing-meltdown-layoffs-cuts-sponsorship-deals/2435076. 
  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. https://www.wsj.com/articles/ftx-tapped-into-customer-accounts-to-fund-risky-bets-setting-up-its-downfall-11668093732?mod=hp_lead_pos1. 
  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. https://www.wsj.com/articles/alameda-ftx-executives-are-said-to-have-known-ftx-was-using-customer-funds-11668264238?mod=hp_lead_pos2. 
  15. ↑ McMenamin, Dave (2023-06-09). "Sources: Crypto.com move won't affect L.A. arena" (in en). https://www.espn.com/nba/story/_/id/37826952/cryptocom-business-change-affect-la-arena-naming-rights-deal. 
  16. ↑ Pequeño, Antonio IV (2023-06-09). "Crypto.com Arena Keeping Controversial Name Despite Exchange Shut Down" (in en). https://www.forbes.com/sites/antoniopequenoiv/2023/06/09/cryptocom-arena-keeping-controversial-name-despite-exchange-shut-down/. 
  17. ↑ "Crypto.com Secures Australian Financial Service License" (in en-US). 2020-12-02. https://finance.yahoo.com/news/crypto-com-secures-australian-financial-093240647.html. 
  18. ↑ Commission, Australian Competition and Consumer (2021-09-09). "Proposed amalgamation of BPAY, eftpos and NPPA" (in en). https://www.accc.gov.au/public-registers/mergers-registers/merger-authorisations-register/proposed-amalgamation-of-bpay-eftpos-and-nppa. 
  19. ↑ "Crypto.com forges deal to buy two of IG Group’s US trading assets". https://www.ft.com/content/f9309964-7640-40ec-afa2-4c493131246f. 
  20. ↑ "IG Group Acquires Small Exchange from Crypto.com’s Parent" (in en). 2023-04-03. https://www.financemagnates.com/forex/ig-group-acquires-small-exchange-from-cryptocoms-parent/. 
  21. ↑ 21.0 21.1 Witt, Steven (May 19, 2022). "Crypto.com Spent Its Way to the Top. Then the Market Crashed. Now What?". GQ. https://www.gq.com/story/crypto-dot-com-explained. 
  22. ↑ Sabrina Toppa (March 16, 2022). "Crypto.com Unveils Exchange in the U.S.". https://www.thestreet.com/crypto/news/crypto-com-unveils-exchange-in-usa. 
  23. ↑ "7 Best Crypto Wallets of August 2022". Money. August 5, 2022. https://money.com/best-crypto-wallets/. 
  24. ↑ Takahashi, Dean (September 1, 2021). "Heavy Metal teams up with Crypto.com to create collectible NFTs". VentureBeat. https://venturebeat.com/media/heavy-metal-teams-up-with-crypto-com-to-create-collectible-nfts/. 
  25. ↑ "Okto, A First-of-its-kind DeFi Wallet App, Launches Globally" (in en). https://www.forbesindia.com/article/cryptocurrency/okto-a-firstofitskind-defi-wallet-app-launches-globally/85111/1. 
  26. ↑ "Crypto.com adds improvements to its DeFi wallet" (in en). https://thepaypers.com/cryptocurrencies/cryptocom-adds-improvements-to-its-defi-wallet--1262695. 
  27. ↑ Gladwin, Ryan (May 17, 2022). "Why Shopify is doubling down on crypto—even after the crash". https://www.fastcompany.com/90756233/why-shopify-is-doubling-down-on-crypto-even-after-the-crash. 
  28. ↑ Bhasin, Kim (October 28, 2021). "Matt Damon is the Face of Crypto.com". Bloomberg News. New York. https://www.bloomberg.com/news/articles/2021-10-28/matt-damon-to-promote-crypto-com-in-race-to-attract-new-users. 
  29. ↑ "CRYPTO.COM becomes PSG Official Cryptocurrency platform". 2021-09-10. https://en.psg.fr/teams/club/content/cryptocom-becomes-psg-official-cryptocurrency-platform. 
  30. ↑ "Staples Center to become Crypto.com Arena in reported $700 million naming rights deal". ESPN. November 16, 2021. https://www.espn.com/nba/story/_/id/32650662/staples-center-become-cryptocom-arena-rich-naming-rights-deal. 
  31. ↑ Hirtenstein, Anna (November 17, 2021). "Staples Center in L.A. to Be Renamed Crypto.com Arena". Wall Street Journal. https://www.wsj.com/articles/staples-center-in-l-a-to-be-renamed-crypto-com-arena-11637145428. 
  32. ↑ Kelly, Dylan (January 29, 2022). "LeBron James' Foundation Partners With Crypto.com to Provide Blockchain-Related Education". Hypebeast. https://hypebeast.com/2022/1/lebron-james-crypto-com-family-foundation-partnership. 
  33. ↑ "FIFA signs sponsorship deal with Crypto.com for Qatar World Cup" (in en). Reuters. 2022-03-22. https://www.reuters.com/lifestyle/sports/fifa-signs-sponsorship-deal-with-cryptocom-qatar-world-cup-2022-03-22/. 
  34. ↑ Chong, Claudia (June 22, 2022). "MAS issues 3 crypto licence in-principle approvals, including to Crypto.com". The Business Times (Singapore). https://www.businesstimes.com.sg/garage/mas-issues-3-crypto-licence-in-principle-approvals-including-to-cryptocom. 
  35. ↑ "Crypto.com enters South Korea via acquisitions" (in en-US). https://social.techcrunch.com/2022/08/08/singapore-based-cryptocurrency-exchange-crypto-com-enters-south-korea-via-acquisitions/. [yes|permanent dead link|dead link}}]
  36. ↑ Park, Kate. "Singapore-based cryptocurrency exchange Crypto.com enters South Korea via acquisitions | TechCrunch". https://techcrunch.com/2022/08/08/singapore-based-cryptocurrency-exchange-crypto-com-enters-south-korea-via-acquisitions/. 
  37. ↑ Nicolle, Emily (August 17, 2022). "Crypto.com Receives Registration as UK Cryptoasset Provider". Bloomberg. https://www.bloomberg.com/news/articles/2022-08-17/crypto-com-receives-registration-as-uk-cryptoasset-provider#xj4y7vzkg. 
  38. ↑ Erazo, Felipe (July 22, 2022). "Crypto.com Obtains Regulatory Approval from CySEC". Finance Magnates. https://www.financemagnates.com/cryptocurrency/regulation/cryptocom-obtains-regulatory-approval-from-the-cysec/. 
  39. ↑ "Crypto.com chooses Paris for European headquarters". 2022-10-12. https://www.reuters.com/technology/cryptocom-chooses-paris-european-headquarters-2022-10-12/. 



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