Hong Kong-based cryptocurrency platform, Crypto.com, announced the launch of its cryptocurrency exchange on Nov. 14.
The Crypto.com Exchange is intended to drive the mass adoption of cryptocurrencies by enabling over one million users the ability to trade digital assets through the Crypto.com web interface, trading API, or through its app.
“Creating an exchange has been a natural extension and next step to ensure that everything stays in our own ecosystem,” Kris Marszalek, co-founder and CEO of Crypto.com, told Cointelegraph at BlockShow Singapore 2019.
Notable features of the Crypto.com Exchange include liquidity, competitive trading fees, institutional-grade custody and security, and intuitive experience through what Crypto.com says is a very easy-to-use interface.
9 cryptocurrencies supported
Although Crypto.com already has over one million users and is one of the first cryptocurrency companies to have obtained the CryptoCurrency Security Standard requirements, Marszalek noted that the next challenge is to onboard users.
“The Crypto.com platform is trusted, secure and has never been hacked. The success rate for the new exchange is high due to these factors. Now, we have to onboard users, which we plan to do by generating activity from our retail platform,” said Marszalek.
While the Crypto.com exchange will initially support popular cryptocurrencies including Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Litecoin (LTC), EOS, XLM, MCO and USDT.
Meanwhile, the platform will be powered by the Crypto.com Coin (CRO). This native digital token will provide additional utility and benefits to users including liquidity, low fees and better execution prices.
For example, CRO staking will provide users with up to 100% discounts on trading fees. Also, new digital assets will be listed on the exchange through “The Syndicate,” which is a Crypto.com fundraising platform.
“CRO holders will receive propriety token allocation. We will also sell every new coin on the exchange at 50 percent off. The exchange won’t charge listing fees and will give users cash back for whatever they sell,” said Marszalek.
Moreover, to increase the liquidity of the CRO coin before the mainnet launch, it will be paired with all coins listed on the Crypto.com Exchange.
Building influence through an exchange
While Marszalek mentioned that he once had doubts about launching an exchange due to the high number of cryptocurrency exchanges already in the space, he now views an exchange as a necessary component for growing the influence of Crypto.com.
“Not only is an exchange a proven revenue model — it’s also where most of the value occurs in the entire crypto ecosystem today. I’m not saying that it will be like this forever, but today having an exchange is a must,” Marszalek explained. He continued:
“I was also against launching an exchange before we had a customer acquisition strategy. Launching an exchange isn’t difficult, but what do you do afterward is.”
Marszalek is confident that the Crypto.com Exchange will thrive, as the company has already met compliance regulations and has a large user base.
“We are assuming it will be easy for us to break into the top 10 exchanges in the next 5 years or so. We have a systematic way to grind our way to the top,” he said.
Crypto.com Exchange is currently in a closed beta phase and will be open to the public in December 2019.