The Crypto.com Lending Platform provides a variety of different services with a user interface that is easy for the average Joe and Jane to understand. With Crypto.com Lending, users are able to earn interest on their crypto holdings, take out crypto-collateralized loans, accept crypto payments, trade cryptocurrencies, and much more. Crypto.com is also well-known for their various card offerings, which involve the use of their MCO token, and a sister exchange site.
In this guide, the term staking is widely used to explain certain concepts. Staking cryptocurrency means locking in an amount of crypto for a predefined period of time.
By: Kyle Torpey | May 6, 2020 | Modified May 25, 2020
|Services provided:||Trading, VISA, wallet, lending, borrowing|
|Max interest available:||18% (for CRO only)|
|Proprietary debit/credit card:||Yes|
|Minimum loan amount:||$100|
|Maximum loan amount:||$1,000,000|
|Bank Account (ACH)||No||No||n/a|
|Wire Transfer||Yes||No||2-8 business days|
|Wallet to Wallet||Yes||Yes||Nearly instant|
Crypto.com is one of the well-known names in the crypto space, likely due to their memorable domain name and various advertising campaigns. Founded in 2016, Crypto.com is focused on providing a variety of financial services to crypto users.
In addition to their crypto lending platform, the most popular Crypto.com product is their various VISA cards that give users access to up to 5% cashback rewards on all purchases. The company also offers the Crypto.com exchange.
Crypto.com users who are willing to purchase and hold MCO tokens will be able to get better deals on various services such as a 100% reimbursement on Spotify, Netflix, and Amazon Prime, and other perks such as access to an airport lounge and discounts on Expedia and AirBnb. For example, the only users who are able to receive 5% cashback rewards on all purchases with their Crypto.com need to stake 50,000 MCO for 6 months.
Other services offered by Crypto.com include a crypto wallet, ability to earn interest on your cryptocurrency by lending it, an automated crypto trading system (access is country dependent), and a crypto payment processing system.
The user experience when taking out a loan on Crypto.com Lending will depend on whether or not MCO tokens are staked. Those who stake MCO gain access to lower rates of interest. Borrowing comes with an 8% annual interest rate if the user stakes 500 MCO or more. Anyone staking 50 MCO or less will have to pay 12% interest on their loan annually.
In terms of collateral options, Crypto.com users are able to back their loans with Bitcoin, Ether, Ripple, MCO, CRO, or Litecoin. The credit received by the user will be in the form of a USD-denominated stablecoin.
There are no credit checks or repayment deadlines involved with Crypto.com loans. The minimum loan amount is $100 and the maximum loan amount is $1,000,000.
Currently, only users in Hong Kong, Singapore, Switzerland, Malta, or the United States are able to access Crypto.com’s credit offerings.
If a loan is not repaid in 12 months or the value of the user’s collateral reaches 85% of the value of the loan balance, then Crypto.com will liquidate the user’s crypto holdings.
Much like the crypto loan system, Crypto.com users who stake MCO are able to get better returns on their interest accounts, known as Crypto Earn. However, the interest rates for for 50 or less, including no stake, are also quite attractive.
For example, without any stake at all, users can earn up to 4.50% P.A. interest on their Bitcoin, up to 10% P.A. interest on their Tether, or up to 16% P.A. interest on their CRO, among many others. With a 500 or more MCO stake, interest earned by the user for the three cryptocurrencies listed earlier, along with others, all increase. The highest possible rate of return is 18% yearly interest for CRO, which is outstanding.
There are three different time periods available for those who make deposits into Crypto Earn: 3-month, 1-month, and flexible. Deposits of supported cryptocurrencies earn between 2% – 6% interest per year, depending on the timeframe. Stablecoin deposits earn between 6% – 12% interest per year, and CRO deposits earn between 12% – 16% interest.
The cryptocurrencies that can be deposited into interest accounts are Bitcoin, Ether, Litecoin, Ripple, Binance Coin, CRO, MCO, LINK, Basic Attention Token, Maker, EOS, Stellar, Cosmos, Tezos, and Bitcoin Cash. Stablecoins available in the program include PAX Standard, PAX Gold, USDC, USDT, TrueUSD, TrueGBP, TrueCAD, and TrueAUD. More tokens are expected to be added to the platform over time.
Crypto.com offers a number of additional features on top of their crypto lending platform, many of which mimic the kinds of financial services you’d see at a traditional bank. In addition to borrowing and earning interest, Crypto.com users can also trade between crypto assets, become a merchant for payment processing services, and get a VISA card with a cashback rewards program.
Much like the crypto lending platform, users of these other Crypto.com services can get more bang for their buck if they’re willing to stake MCO tokens.
Crypto.com’s payment processing platform for merchants involves no fees, as long as the merchant is settling in crypto. Merchants who wish to receive their payments in fiat currency have to pay a 0.5% processing fee.
Finally, there’s the often-discussed Crypto.com cards. These cards come with a variety of benefits, but the strongest perks are reserved for users who are willing to stake large amounts of MCO. For example, users staking 50,000 MCO are able to receive 5% cashback on all purchases; rebates for their monthly payments to Spotify, Netflix, and Amazon Prime; discounts at Expedia and Airbnb; and much more.
Those who have no interest in staking MCO are only able to receive maximum cashback rewards of 2%.
Before the cryptocurrency boom, the crypto.com domain was registered by well-known cryptographer Matt Blaze way back in 1993. Blaze was a user on the infamous Cypherpunks mailing list back in the 90s, and in 1994, he found a critical vulnerability in the Clipper chip. Blaze has also been on the board at the Tor Project since 2016.
Monaco bought the Crypto.com domain name from Blaze in 2018 for an unknown amount. At the time, Monaco was a new token that had completed an initial coin offering in the previous year. After the purchase of the Crypto.com domain, a rebranding occurred and the project began working on providing additional financial services for the cryptocurrency ecosystem.
Crypto.com offers a variety of different financial services, and each of these services come with their own fee structures.
For the exchange, trading fees range from 0.04% to 0.20% for executed trades. Rebates on these fees are available for CRO token stakers.
There are no fees involved with Crypto.com merchant accounts, unless the user wishes to convert their received cryptocurrency payments into fiat currency. These transaction incur a 0.5% fee.
There are a number of fees associated with Crypto.com cards, such as ATM withdrawal fees and interbank exchange rates. Users can received discounts on these fees or avoid them completely by staking MCO. There is also a $50 fee for closing a card account and receiving funds back via a bank transfer; however, users can also simply spend the remaining amount of money left on their card for free.
Crypto.com is a set of special services and features available to Crypto.com’s top tier customers. Some of the additional services available to Crypto.com Private members include: access to Crypto Invest, over-the-counter trading of MCO and CRO, access to Crypto.com’s research reports, access to industry events, an inheritance service, and priority customer support.
To gain access to a Crypto.com Private membership, users must stake either 5,000 or 50,000 MCO. Access to perks are dependent on the stake amount.
The Crypto.com team is headquartered in Hong Kong, although the company also has an office in Singapore.
There are two tokens associated with the Crypto.com platform: CRO and MCO.
The MCO token can be staked by users in order to gain a variety of benefits, such as rebates on fees or better rates of returns on interest accounts. Fee rebates are also available on the exchange when users pay fees in CRO. The CRO token is mainly relevant to the exchange platform at this time, while the MCO token is more useful for other areas of Crypto.com.