Crypto.com is one of the most popular crypto exchanges, with over 10 million registered users. This Singapore-based market closely resembles traditional banking by allowing users to stake its native token $CRO (or its Ethereum-based ERC-20 version) to get a crypto credit card.
The brand is helping make crypto more mainstream through partnerships with Formula One, the UFC, and Matt Damon. It even paid $700 million for naming rights of the Los Angeles Staples Center stadium, which will be known as Crypto.com Arena until 2041.
But there are questions to its business model; to get the best rates, you’ll need to stake at least 5,000 CRO to earn interest, and minimum requirements for its Visa (NYSE:V) debit cards go as high as $400,000. And the price hasn’t been that stable over the past five years, so is it worth hodling for up to 12 percent APR and other benefits?
Let’s break down Crypto.com, along with its features and benefits and the business behind it to determine if it’s worth the coin.
What Is Crypto.com?
Crypto.com was initially founded in Switzerland in 2016 as Monaco, although the domain crypto.com was registered all the way back in 1993 by a cryptography researcher and professor named Matt Blaze. He inevitably sold the website in 2018 after a heated bidding war, as he adamantly refused to sell the term to cryptocurrency companies.
Blaze is a crypto bear who disliked these new digital investments and believed selling the domain would cause harm to the cryptography industry he loves. Indeed, crypto became a more popular buzzword over the past five years, and people are referring to the currencies more than the encryption technology behind them.
The company initially gained public and regulatory ire for promoting a Visa-backed cryptocurrency card. But that partnership inevitably happened in 2017, so the company had the funds to make Blaze an offer he couldn’t refuse. The exact sale price is undisclosed, but domain experts estimate the transaction to be valued in the range of $5 million to $10 million.
Crypto.com has business savvy and understands how to spend its money on raising awareness. But did Blaze sell because it’s more trustworthy than other coins, or did they just pay him enough not to care?
Is Crypto.com Trustworthy?
Overall, Crypto.com is a legitimate business that is doing its best to provide value for its users. It has well over 10 million users today, and its Visa crypto debit cards provide a lot of great bonuses we’ll discuss in more detail in the staking section below. But the most important is the ability to earn interest.
For investors seeking to earn interest on their crypto, Crypto.com allows staking of a lengthy list of Proof-of-Stake (PoS) tokens. That makes it a great choice for those seeking liquidity on their investments. Of course, you’ll need to stake its proprietary CRO token to receive the best rates.
Still, Crypto.com does offer a secure platform for decentralized finance (DeFi), and it has a broad range of financial services. It’s a sign of things to come, as crypto-based companies continue to disrupt the traditional business models in tech, finance, and business.
But how does it compare to Coinbase?
Crypto.com vs Coinbase
Like Coinbase (NASDAQ:COIN), Crypto.com offers a wide array of crypto tokens. In fact, it offers an even broader range of coins, with support for over 200 coins and 20 fiat currencies versus about 100 on Coinbase. Many of those tokens aren’t available to U.S. customers, however, and New York citizens are flat-out restricted.
It also offers lower fees than Coinbase, and you have the option of staking many more tokens. This means you can presumably make more money through Crypto.com. However, there are some tokens that provide a better APR or APY on Coinbase, so be sure to perform due diligence to find the best option for your needs.
What Coinbase does better than Crypto.com is onboard newbies. The platform’s learn-to-earn program gives people the chance to own a variety of upcoming tokens. It also makes the process of researching coins before investing much easier than Crypto.com.
Bulls still believe there’s a reason to hodl and stake CRO tokens though.
Benefits of Staking CRO Token
When it started out, Monaco used the MCO token, and the transition to the CRO token via a late 2021 token swap was a long one. Many users were unhappy with the changes.
Crypto.com supports staking a variety of tokens, but it offers the best deal for staking CRO. In doing so, you earn an increasing discount on trading fees and higher interest rates on your held balances.
Staking higher balances also gives you access to a different level of debit card. Initially, you start with the Midnight Blue, which provides one percent cash back on purchases.
At 5,000 CRO, you’re upgraded to Ruby Steel, which doubles your cash back and pays you back for your monthly Spotify (NYSE:SPOT) fees paid on the card. It also provides interest on savings and a trading discount. By 50,000 CRO, you’re upgraded to Royal Indigo and Jade Green, which provide 3 percent cash back and pay for your Netflix (NASDAQ:NFLX).
By the time you reach the top tier (Obsidian), you can trade CRO practically free, earn 12 percent interest, and gain credits with Expedia (NASDAQ:EXPE) and Airbnb (NASDAQ:ABNB) on top. It’s important to note that these brands are not partnered with Crypto.com the way Visa is.
The Bottom Line on Crypto.com
Crypto.com is one of the most visible crypto brands, thanks to a high-profile sponsorship and marketing campaign. It also offers cheaper fees than Coinbase for buying, selling, and trading your crypto assets. Of course, you’ll receive the best benefits from hodling the native CRO token, which hodlers of the preceding MCO token take issue with.
Still, the platform’s savvy branding and decision to rename one of the most popular sports stadiums in the U.S. could give it an edge in an increasingly competitive crypto sector.
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