Crypto.com is often viewed as a pioneer for its cryptocurrency interest account and overarching ecosystem.
Since its launch in 2016, Crypto.com has grown to offer a wide variety of services, such as:
- Crypto Earn: A cryptocurrency interest account product.
- Crypto Credit:An instant cryptocurrency loan product.
- MCO Visa Card:a Visa debit card that allows users to convert cryptocurrency to fiat and spend.
- Crypto.com App:an app designed to facilitate the buying, exchange, sending, and storage of cryptocurrency.
- Crypto.com Exchange: a native exchange that utilizes CRO to offer users liquidity and low fees on a wide variety of popular cryptocurrencies.
- NFTs:Sale and auction platform for NFTs.
Basically, everything but the kitchen sink.
This Crypto.com review will focus on the Crypto Earn feature, sometimes referred to as Crypto Invest, in line with our series on cryptocurrency interest accounts. Crypto.com Crypto Interest Account Quick Summary
To get the most out of Crypto.com’s “Crypto Earn” product, you’ll find yourself having to jump through a few hoops, which we’ll get into below.
Crypto.com’s homepage boasts interest rates up to 14%, but it conveniently doesn’t mention that these rates are only available for power users holding large amounts of its token CRO.
Let’s explore if Crypto.com is worth using for any tier of users. About Crypto.com
Crypto.com originally launched under the brand Monaco Technologies in June 2016 but made the branding shift in July 2018 to the domain crypto.com. Its legal name is MCO Malta DAX Limited.
The company experienced significant momentum in its early days. It was accepted into Asia’s leading FinTech accelerator, SuperCharger, the HK-government-backed Cyberport Incubation Program, and would go on toraise $26.7M in a June 2017 token sale for its token MCO.
Crypto.com is currently headquartered in Hong Kong and lists Kris Marszalek as CEO, Rafael Melo as CFO, Gary Or as CTO, Bobby Bao as Head of Corporate Development. The Crypto.com team boasts cumulative decades of experience and consists of alumni from Binance, Alliance Payment Solutions, Western Union, JP Morgan, Deutsche Bank, Goldman Sachs, McKinsey, and PayPal.Is Crypto.com Legit?
If this is your first exposure to Crypto.com’s Crypto Earn product, you may get a little confused by the onboarding process– we sure as heck were.
But that’s all right, we waddled around the dark and can help untangle the complications.
At an elementary level, Crypto Earn enables users to deposit supported coins (like Bitcoin and Ethereum) and stablecoins (like USDC and Tether) and earn around 1.5% to 6%, respectively. Given the fact that US-based competitors BlockFi and Celsius offer around 5x more on Bitcoin and nearly double on stablecoins, just dipping your toes into Crypto.com isn’t anything to write home about.
However, things change with Crypto.com’s native token, CRO. Users who buy, stake, and “lock up” their CRO benefit from dramatically increased rates. This can be confusing, but these basic definitions may help:
- Locking up:Users agree to have their cryptocurrency “locked” on the platform for a specified duration, which is either a 3-month duration and a 1-month duration on Crypto.com. Users receive higher rates of return during this period, but cannot withdraw their cryptocurrency.
- Staking:If users purchase Crypto.com’s native token CRO and “stake” it, they’ll receive an even higher percentage. This staking can be done automatically on the Crypto.com app, so in theory, all you’d have to do is purchase the CRO on the app and elect to stake it, which would increase the rates you earn on your other Crypto Earn deposits, as well as your CRO.
Crypto.com requires you to both stake and lock up your tokens, with lockup periods ranging from 1-month, 3-month, to even 6-month for the Visa cards. Is Crypto.com Crypto Earn Worth Your Time? Crypto.com Interest Rates
Let’s explore the various Crypto.com interest rate tiers, keeping in mind this isn’t investment advice.
IMPORTANT: The CRO stake is based on the USD equivalent of CRO, not a quantity amount of CRO. For example, the highest tier requires you to stake $40,000 worth of CRO, not 40,000 CRO coins (about $3,200 at $0.09 per coin.) Whether or not this is intentionally deceptive, it can be very confusing.
💩$1,000 or less of CRO staked with no lock up (i.e. 0 CRO) gets 1.5% on BTC and 6% on stablecoins.
This is significantly under the industry average. Frankly, if you don’t plan on owning and locking up CRO,Crypto.com isn’t worth it.
You’d get 6% on stablecoins like CRO and a measly 1.5% on Bitcoin. Competitors BlockFi and Celsius offer higher rates and have much better onboarding experiences.
✅$1,000 or less of CRO staked with a three-month lock-up gets 10% on stablecoins and 4.5% on BTC.
This is on par with the industry average.
If you’re ok with holding CRO,Crypto Earn may be worth it.
The real CRO holding perks start at 4,000 CRO– which is about $500 to $1000 depending on recent token prices.
✅⚠️ A minimum of $4,000 of CRO locked up for three months gets 6.5% on supported coins and 12% on stablecoins– interest rates that are a bit more competitive with BlockFi and Celsius.
This rate is better than both BlockFi and Celsius. Crypto.com also doesn’t have any quantity limits on the assets (yet), while BlockFi and Celsius reduce earnings after 2-3 BTC.
However, BlockFi or Celsius don’t require you to lock up your assets to earn comparable rates.
This may be a risk worth considering depending on the volume of tokens.
⚠️$40,000 or more of CRO locked up for 3-months bumps the rates up to 8.5% on supported coins like BTC and 14% on stablecoins.
Power users who hold significant amounts of CRO will have a drastically better perk experience than those who don’t, not considering the volatility of the token.
This rate beats BlockFi and Celsius, but locking up $40,000 in CRO is almost ludicrous– it may or may not be worth it considering the number of tokens you plan to earn interest on.
This CRO stake would also grant you access to the 3rd tier of Crypto.com Visa cards (3% in CRO rewards, 100% rebate on Spotify and Netflix paid in CRO.) The best Crypto.com card tier is the Obsidian, which requires $400,000 in CRO staked, which boosts CRO APY to 8%.
While your CRO is staked and locked up for 3 months, it also earns 6% on all tiers. CRO Token Analysis
It’s tricky to create a crypto.com review that solely focuses on the Crypto Earn product because the feature is so intertwined with the Crypto.com ecosystem. It’s a cryptocurrency interest account, exchange, Visa card, and the CRO token strategically underpins the entire system.
CRO underpins everything.
CRO, like many other cryptocurrencies, is very volatile and risky.