Everybody has heard about Crypto.com. This company is known all over the world and they do famous marketing campaigns like “Fortune favours the brave”. Also they have done amazing things like buy naming rights to Lakers’ Staples Center. Whatever happens Crypto.com has become one of the most famous exchanges in the world.
The beginning
Crypto.com started in July 2016 under the name Monaco Technologies GmbH. The company started with an exchange and progressively began to launch a wide range of products and services aimed at users around the world, standing out especially for the marketing of crypto debit cards operated through the Visa network. Monaco Technologies GmbH became Crypto.com in July 6, 2018, beginning to market its products in a greater number of countries in the region, highlighting its entry into Singapore, and later in the United States after a partnership with Metropolitan Commercial Bank.
Introducing crypto culture
Crypto companies are trying to introduce crypto culture by sports advertising using different strategies, but the best strategy has been taken by Crypto.com. They bought the naming rights to Lakers’ Staples Center, but their strategy went further. In the F1, they are one of the principal sponsors and before starting the racings, there is a Crypto.com ad. This ad with Matt Damon is very famous and was broadcast in 20 different countries and it appeared in the superbowl. Also they signed a sponsorship deal with the NBA’s Philadelphia 76ers, Ultimate Fighting Championship, esports teams and F1, among others.
Crypto.com knows how to do marketing campaigns and other companies in the cryptocurrency sector are copying some of their actions. For instance, Binance is the new partner of the BWT Alpine F1 team: “Binance is excited to announce a pioneering partnership with BWT Alpine F1 Team, the first Formula 1 team to join the Binance Fan Token Platform. This partnership sees Binance become the official Fan Token partner of BWT Alpine F1 Team and the Alpine Esports partner from 2022 onwards”. This binance strategy is very good, but they don’t have the same visibility as Crypto.com in F1. However, these two companies are looking for different things. Crypto.com wants visibility and be popular, while Binance wants to be traders’ favorite company (and it is). Obviously, Crypto.com is trying to attract traders and binance wants to be famous, but these companies have different goals.
Crypto.com vision
Crypto.com wants to be “the leading cryptocurrency bank.” They want to facilitate access to the world of cryptocurrencies to the entire population. You can have a wallet with bitcoin and buy a coffee with your Crypto.com card, which converts a small part of the bitcoins into dollars to make the coffee payment. You can even ask for a loan like in a tradicional bank. They aren’t a simple exchange, they go further.
By other hand, Binance is faster, it has more cryptocurrencies, you can trade P2P and is better for traders. The bigger active user base is gathered by Binance with around 13.5M users. Crypto.com has around 10M active users.
Cypto.com budget
Crypto.com spends a lot of money in marketing and advertising, but is it really worthwhile? The company spent around $100 million on the campaign with Matt Damon “Fortune favors the brave,” the Lakers’ name cost $700 million and another $200 million in F1 approximately. They have 10 million active users, but I think they’re making all the investment in marketing and advertising profitable because they’re investing in the long term. They want to reach another billion users and become one of the top 20 global brands, said CEO Kris Marszalek. These types of companies have a lot of money to invest and Crypto.com has decided to invest it in making themselves known.
Maybe you are thinking “it seems that Crypto.com spends too much money on advertising”. We don’t know exactly how much they spent on advertising, but let’s imagine they spent a billion ($1,000,000,000). If Crypto.com wins 5$ monthly for each customer along a year they win $600 million. Obviously they have other expenses apart from advertising, they have to pay their workers, pay taxes, buy work material (such as computers) and other expenses. But if they can recoup the investment in 5 years it will have been a very smart move. This year they spent $700 million buying naming rights to Lakers’ Staples Center and this increased the marketing budget. Surely in 2022 the company will spend less than 2021, so they can recoup the 2022 investment faster.
In short, Crypto.com has achieved incredible things such as being one of the main sponsors of F1 like DHL, Rollex or Pirelli. Also they won 10 millions of users in four years and they can spend 1 billion in advertising without problems. This company has entered the Olympus of marketing along with Apple, Coca-cola company, Pepsi Co, Rollex or Ferrari.