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Business Operations Business Models

How Does Crypto.com Make Money (Business and Revenue Model)

The Crypto.com business model

Crypto.com logo
Here’s what you should know:
  • What is Crypto.com, and how does Crypto.com work?
  • How does Crypto.com make money?
  • NFT Marketplace Sale Fees (for Traders and Creators)
  • Trading Fees (Crypto.com Exchange Fees)
  • Interchange Fees (Crypto.com Visa Card)
  • Capital Gains From Investments (Crypto.com Capital)
  • Crypto.com subsidiaries, acquisitions, and exits
  • Crypto.com profit and revenue
  • What is the Crypto.com business and revenue model?
  • Crypto.com funding, net worth, and valuation

How does Crypto.com make money? Well, here is a full, in depth, breakdown of their four (4) revenue streams and the different products and services they offer, as well as the Crypto.com business and revenue model, how much Crypto.com makes per year, and how Crypto.com works.

What is Crypto.com, and how does Crypto.com work?

Crypto.com is an exchange platform to buy, sell, and trade more than 250 cryptocurrencies including BTC, ETH, DOGE, and SHIB.

Founded in 2016 by Bobby Bao, Rafael Melo, Kris Marszalek, and Gary Or, Crypto.com now has more than 10 million users on its platform.

So, how does Crypto.com work? To use Crypto.com, users can first download their mobile app in the Apple App Store or Google Play store and sign up for an account

Once an account is created, users can buy, sell, search for, and track crypto prices, as well as other features.

Some of Crypto.com’s competitors include Coinbase, Binance, FTX, Gemini, and other crypto exchange platforms.

Crypto.com App in Apple App Store | Crypto.com Business Model | How Does Crypto.com Make Money | How Does Crypto.com Work
Source: Apple App Store | Crypto.com

How does Crypto.com make money?

According to Crypto.com, the company now has more than 10 million users on its exchange as well as handling $5.5 billion in daily spot exchange volume in 2021.

So how does Crypto.com make money off of all those users and volume?

Below is a breakdown of how much money Crypto.com makes and its revenue model. Including all revenue streams and how much they charge for their services.

Here are the 4 ways of how Crypto.com makes money in 2022

Crypto.com has a revenue model that makes money in four (4) ways; NFT marketplace sale fees, trading fees on their exchange, interchange fees from their Crypto.com Visa Card, and capital gains from their investments.

#1. NFT Marketplace Sale Fees (for Traders and Creators)

Crypto.com branched out into the NFT space by launching its own NFT Marketplace on March 26, 2021.

So, how does Crypto.com make money from NFT sales? Crypto.com makes money by collecting a fee every time a seller or reseller makes a successful sale on their marketplace. You can see how much the fees are below.

Crypto.com NFT Fees:

  • Primary seller fees: 15% listing fee when a users self-minted NFT is sold for the first time
  • Secondary reseller fees: 5% fee everytime an NFT is resold on the Crypto.com marketplace
Crypto.com NFT Marketplace | Crypto.com Business Model | How Does Crypto.com Make Money | How Does Crypto.com Work
Source: Crypto.com

Note: Crypto.com makes money when the NFT is first sold, and every time it’s resold thereafter.

#2. Trading Fees (Crypto.com Exchange Fees)

As with any exchange, Crypto.com also makes money from its trading fees from the trades performed on its exchange platform.

Crypto.com uses a maker-taker fee model which is commonly used on cryptocurrency exchanges. And how they determine how much to take per trading transaction is determined by the users’ fee level (there are 9 levels). Their fee level is based on the users’ last 30 days of trading volume.

In short, the more a user spends on the exchange, the lower their fees.

Level 1 is a 30-day trading volume of $0 to $25,000 where a user is charged 0.4%. Level 9 is a 30-day trading volume of $200 million+ where a user is charged between 0.04% to 0.1%. And then there is everything else in between.

You can see all 9 levels of 30-day trading volume with fee breakdowns, here. You can also see the simplified version below.

Crypto.com trading fees:

  • Maker fee: 0.04% to 0.4%
  • Taker fee: 0.1% to 0.4%

Note: Crypto.com collects fees from both buyers and sellers.

#3. Interchange Fees (Crypto.com Visa Card)

Crypto.com also makes money off of the interchange fees they receive from the visa cards they issue to users who stake their Crypto.com CRO token for a period of 180 days.

How does Crypto.com make money from interchange fees? Crypto.com makes money whenever a Crypto.com cardholder uses their Visa issued card.

When this happens, Visa charges the merchant an interchange fee between 1.15% + $0.05 to 2.40% + $0.10 of the charge amount. From that, Visa gives a percentage of its interchange fee revenue to Crypto.com. Although it’s unclear what percentage Crypto.com receives from Visa.

Crypto.com Visa Card | Crypto.com Business Model | How Does Crypto.com Make Money | How Does Crypto.com Work
Source: Crypto.com

#4. Capital Gains From Investments (Crypto.com Capital)

In March 2021, Crypto.com expanded its business into the venture capital sector with Crypto.com Capital.

Crypto.com Capital is $500 million investment fund aimed at investing in early crypto startups in the Seed and Series A stages; which currently has made 24 investments at the time of writing this.

Crypto.com subsidiaries, acquisitions, and exits

To date, Foris DAX MT Limited (Crypto.com) has made a total of 3 acquisitions and 6 investments.

Mergers and acquisitions business model
Source: Crunchbase | Crypto.com

Crypto.com profit and revenue

Crypto.com has not released any official reports in regards to company earnings. But according to reports, Crypto.com had an estimated revenue of at least $1.2 billion in 2021.

Note: Because Foris DAX MT Limited (Crypto.com) is a privately held company, they are not required to make their annual reporting, such as Form 10-K’s, pubic.

What is the Crypto.com business and revenue model?

Crypto.com makes money through a few revenue models that they combine within their company, they are:

  • Fee for service (FFS) business model
  • Transaction based business model
  • Interest based business model
  • Business to business (B2B) business model
  • B2B2C (partnerships) business model
  • Mergers and acquisitions (M&A) business model

Crypto.com funding, net worth, and valuation

According to Crypto.com’s Crunchbase profile, Crypto.com has not raised any funds.