A Crypto Icon
Since 2018, mainstream adoption of cryptocurrencies and the associated exchange trading platforms has exploded. With it, Crypto.com has arguably emerged as one of the most iconic brands in the cryptocurrency industry.
With rapid growth from this period, the Singapore based group is on course to see its userbase hit 100M. Through high-profile sponsorships, Crypto.com has managed to become one of the most recognised brands in the space.
We look at the characteristics surrounding the Crypto.com strategy, that has been underpinned by premium branding in an industry with founding principles of financial inclusion for the masses.
Brand positioning
In comparison, Crypto.com is perhaps not considered the leader in any category.
They are not the cheapest. They do not have the biggest user base. Nor do they offer the biggest selection of coins and tokens. However, what they have created, is a popular premium brand positioning. Cryptocurrency for the masses or perhaps, more accurately, the mass affluent.
In the first half of 2021, during the height of growth and competition against the likes of Binance and FTX. Crypto.com surpassed FTXs ambassador driven strategy whilst adopting a strategy that Binance largely avoided.
They initiated a series of high-profile acquisitions of sports properties, striking sponsorship agreements of more than $500M. Alongside this, they focused their campaigns around crypto education, awareness and lifestyle integration.
Sponsorship Strategy
Crypto.com aligned itself with major city teams (Los Angeles Lakers and Paris Saint Germain) that hosted marquee signings of superstar talent with global recognition. Alongside title partnership with the UFC, the world’s biggest MMA promotion, and Formula One. All partnerships were high-value and globally recognised associations.
The alignment was a clear differentiation from other crypto related businesses that acquired sponsorship rights in the $3-8M range, typically within football.
By choosing a multi-property sponsorship, they were able to boost the brand recognition. In turn, through familiarity and interest, they almost compelled fans to engage with their app. The high-profile partnerships elevated trust and was consistent with Crypto.com being a premium brand.
Their properties included kit and octagon placements (UFC), alongside advertising around circuit (F1) and stadium naming rights (NBA).
Strategy Outcome
From this expenditure, we can then look at indicators of their performance.
The Crypto.com userbase accelerated from 5M (2020), to 10M (2021) and most recently to 80M (2022). It still remains a relatively smaller exchange but is perhaps able to generate higher average revenue per user (ARPU) with a diversified product range that includes a Visa card offering.
While Crypto.com at 3.6M monthly users, is certainly dwarfed by the likes of Binance (~50M) and Coinbase (~30M). Nevertheless, it retains its position as seventh biggest crypto exchange and commitment to continuation of the strategy appears evident:
“We will continue to invest in our sports partnerships as they play a pivotal role in helping to accelerate the world's adoption of cryptocurrency."
- Steven Kalifowitz, Crypto.com (CMO)
Final Thoughts
The multi-sport strategy certainly contains a high degree of risk to return on investment. However, executed well it is highly effective in compelling fans to engage with the brand.
But premium positioning or not, every exchange or trading platform needs users, liquidity and volume to grow. Crypto.com looks set to continue capitalising on the everchanging crypto exchange landscape without engaging in the race to the lowest fees.
