Cryptocurrency platform Crypto.com received regulatory approval from the Cyprus Securities and Exchange Commission (CySEC) just three days after registering with the Italian watchdogs.
Crypto.com’s CEO Kris Marszalek said Europe was the first step of the company’s expansion plans. The announcement quotes:
“Europe is a priority region for Crypto.com and our continued expansion in the market is a testament to our commitment to compliance and collaboration with regulators. Our registration in Cyprus is the next significant step in our continued progress as we expand our products and services to more customers.”
CySEC’s approval will allow Crypto.com to offer all its products and services to customers in Cyprus as long as it complies with the regional legislation. Crypto.com also received approvals from Greece, Singapore, and Dubai very recently.
Crypto.com in bear market
While it continues expansion, Crypto.com disclosed plans to cut costs during the early days of the bear market.
On June 13, the company announced it was laying off 5% of its staff, which equated to 260 people. Crypto.com pointed to the bear market conditions as a reason for the layoffs. It also said it would take additional precautions to cut costs.
Crypto.com’s CEO Kris Marszalek posted on Twitter and said:
“Our approach is to stay focused on executing against our roadmap and optimizing for profitability as we do so. That means making difficult and necessary decisions to ensure continued and sustainable growth for the long term…”
Spending too much
While many crypto companies downsized at the beginning of the winter, Crypto.com was the only one that got heavily denounced. The critics said the campaign spent too much, too fast on campaigns and naming rights.
700 million naming rights deal
=35 million per year
More than covers those 260 jobs.
And thats not even getting into all the other non-sensical marketing dollars you’ve spent.
— ElenDegenerate (@ElenDegenerate1) June 11, 2022
Crypto.com started its bravery campaign with the motto “Fortune Favors the Brave” in October 2021. Within five months, the company released three videos featuring famous actor Matt Damon and NBA stars LeBron James and Joel Embiid. Each celebrity appeared in one video and emphasized the company’s bravery motto.
While the total amount spent is unclear, Matt Damon’s video cost about $100 million. LeBron James’ video, on the other hand, played during the Super Bowl commercials, which charge companies about $7 million just to show the advertisements.
Crypto.com drew a lot of attention to itself when it bought the naming rights of the Staples Center in Los Angeles for $700 million to re-name it “Crypto.com Arena.” Moreover, the company spent an additional $400 million on six sports team deals last year.