Crypto.com: Overview of the Crypto.com Chain Ecosystem
Crypto.com was formed in 2016 with the goal of speeding up the world’s adoption of blockchain technology and making cryptocurrencies accessible to everyone. The project is helping to reimagine banking by providing users with a comprehensive range of DeFi services, as well as the Crypto.com App, Crypto.com Exchange, and Crypto.com Visa Card.
The Crypto.com Chain, which uses the Cosmos Tendermint Core BFT consensus mechanism, is able to offer such a wide range of services because of its robust crypto-economic system and overall technical prowess. The Crypto.com ecosystem’s native currency is the CRO coin.
More information on Crypto.com’s technological architecture and user-facing features may be found here.
Monaco Technologies GmbH, founded in June 2016 by CEO Kris Marszalek and three other founding members, was the seed company for Crypto.com. On July 6, 2018, the project was renamed Crypto.com.
Crypto.com started sending its Crypto.com Visa Card to users in APAC markets in October 2018, and a month later, the organization released the first version of the Crypto.com Chain protocol. Crypto.com proudly announced on December 19, 2018, that it had signed a Memorandum of Understanding (MOU) with Ledger, a blockchain cold wallet provider, to secure the protection of the platform’s funds.
This feature allowed customers to use the Crypto.com App’s products and services on demand while retaining a high level of security comparable to that of a cold wallet. Crypto.com began sending its Crypto.com Visa Cards to US customers in March of this year, and the platform surpassed one million users in September.
The platform grew at an exponential rate in 2020, and by October, the company had hired its 600th full-time employee and had over 5 million users.
Crypto.com Value Proposition and Main Components
When the founders of Crypto.com began working on the project, their goal was to assist individuals all over the world take control of their funds by safeguarding their identities and personal information.
To achieve this purpose, Crypto.com created a number of new services, many of which are integrated into the Crypto.com App, such as:
- Crypto Trading (via the Crypto.com Exchange and App)
- Crypto Earn
- Crypto.com Pay
- Crypto Credit
- Crypto.com DeFi Wallet and DeFi Swap
- Crypto.com Visa Card
As of this writing, Crypto.com’s flagship product, the Crypto.com App, supports over 80 crypto assets and seven types of fiat currencies, allowing users to purchase, sell, store, send, and track crypto assets securely.
Crypto Earn allows customers to earn interest on their cryptocurrency by paying out competitive annual dividends of up to 12%, depending on the term and asset type. CRO coin holders receive the highest dividends of any asset class.
Crypto.com Pay is a mobile payment service that allows users to shop and pay using bitcoin through the Crypto.com App.
Users can get CRO coin payback on Pay Gift Card purchases and free peer-to-peer transfers with Pay Your Friends, among other benefits.
Crypto.com Pay Checkout enables merchants to accept cryptocurrencies as a payment option and get paid instantaneously in their preferred fiat currency or cryptocurrency.
When compared to typical payment processors, merchants pay no processing fees for crypto payments or save up to 80% on fees. Users can get a loan instantaneously with no payment deadline and no credit check using Crypto Credit.
Users can borrow stablecoins by depositing CRO, BTC, ETH, and other assets. Crypto.com DeFi Wallet is a non-custodial, decentralized wallet that gives users more control over their funds.
DeFi Wallet features Chainlink price reference data, which provides DeFi tokens with decentralized price feeds. Users can also use DeFi Swap to swap and farm their DeFi assets, as well as gain up to Triple Yield for providing CRO currency liquidity and staking CRO coin, all through the Wallet.
Larger holders of CRO can stake their coins as validators on the Crypto.com Chain, earning incentive network rewards and settling transaction fees.
The Crypto.com App is also fully connected with the Crypto.com Exchange, which gives users access to over 80 cryptocurrencies for trading. Users can connect Crypto.com’s financial services and payment solutions with the Crypto.com Visa Card, in addition to all of the above features.
Users of the Crypto.com card can get up to 100% refunds on Amazon Prime, Netflix, and Spotify, as well as up to 10% return on all Airbnb and Expedia transactions (depending on card tier). Users may get even more benefits with Crypto.com Visa Cards, which offer up to 8% cash back on purchases depending on the card tier.
The amount of CRO coin a user has staked determines the card tier. Coins are normally held for a six-month lock-up period when staking CRO, during which time users can earn up to 12% APY on their staked CRO.
Without Tendermint’s BFT consensus process, which acts as a major piece of infrastructure for the Crypto.com Chain protocol, none of these services would be possible.
Tendermint’s fault-tolerant design makes it secure, resilient, and permissionless, while also allowing for high transaction speeds and low costs.
Crypto.com’s advanced network of nodes also speeds up an on-chain settlement, payment infrastructure, and general service usability in the ecosystem.
CRO has a total supply of 100 billion coins, which came from five secure multi-signature wallets, each dedicated to a different purpose:
- Secondary distribution/launch incentives: 30%
- Network long-term incentives: 20%
- Capital reserve: 20%
- Ecosystem grants: 20%
- Community development: 10%
To preserve the project’s long-term health, Crypto.com’s founders determined that freezing 60% of the total CRO coin supply was in the best interests of the ecosystem.
The capital reserve and network long-term incentive allocation wallets will both stay locked until November 7, 2022. Following the successful launch of the Croeseid Testnet in October 2020, the ecosystem grants wallet will be frozen until the introduction of the new Crypto.com mainnet, which is anticipated as the next milestone.
Furthermore, the CRO coin allocation’s secondary distribution and launch incentives component (30 percent of the total supply) will be automatically transferred into its multi-sig wallet on a daily basis via a smart contract.
The following is the allocation of tokens per year for the next five years:
- Year 1: 10% of the total circulating supply (10 billion coins)
- Year 2: 8% of the total circulating supply (8 billion coins)
- Year 3: 6% of the total circulating supply (6 billion coins)
- Year 4: 4% of the total circulating supply (4 billion coins)
- Year 5: 2% of the total circulating supply (2 billion coins)
The Crypto.com ecosystem began with MCO (Monaco coin) as its native cryptocurrency, but it has since transitioned to CRO coin for all in-network functions.
This move aims to create a next-generation cryptocurrency infrastructure for Crypto.com customers, with the goal of eventually unlocking a broader set of bitcoin-based DeFi features. MCO has been a main driver for the Crypto.com App and its numerous capabilities since the beginning of the Crypto.com ecosystem.
By November 2, 2020, all Crypto.com customers were required to convert their MCO into CRO coins via the Crypto.com App.
Crypto.com’s services, including the Crypto.com Visa Card, the Crypto.com App, and trading and payment services integration, are now powered by CRO coin, and further Crypto.com App capabilities will likely be powered by CRO coin in the future.