Crypto.com: what is the cryptocurrency exchange app and why did it pay $700 million to rename Staples Center?

A cryptocurrency exchange app founded in 2016 has paid a reported $700 million for the naming rights of the Staples Center in Los Angeles.

The sports centre, which has had a long association with the office and stationery supplier Staples, will soon be known as the Crypto.com Arena.

The financial investment to secure the naming rights of the sports centre for 20 years is understood to be the highest fee ever paid for the same duration.

Here’s a look at what Crypto.com is and why it paid so much for the naming rights of the home of NHL team LA Kings and NBA giants LA Lakers and LA Clippers.

What is Crypto.com?

Crypto.com is a cryptocurrency exchange app with more than 10 million users.

Founded in Singapore in 2016 by quartet Bobby Bao, Gary Or, Kris Marszalek, and Rafael Melo, it was initially known as Monaco.

Monaco pursued the domain name Crypto.com, however, which was registered way back in 1993 by American professor Matt Blaze.

In 2018, Monaco secured a $12 million buyout of the domain name and changed its company name to Crypto.com and now has 3,000 employees.

The crypto exchange app allows users to quickly and easily buy and sell from a selection of more than 200 cryptocurrencies "at true cost", says its website.

Cryptocurrencies are a digital coin or token used to pay for goods and services like more traditional, physical money such as British pounds and pence.

Largely unregulated, the crypto market can be a volatile place though with big gains and losses.

Why is the Staples Center changing its name to Crypto.com Arena?

Crypto.com purchased the naming rights to the Staples Center earlier this year to get their name out there and increase brand awareness.

The Staples Center is seen as a good fit for the cryptocurrency company as it combines elite sports, music and entertainment of a relatively new build.

Built in the late 1990s, the multi-use arena doesn’t have the historical ties to a certain name, such as the Fenway Parks and Old Traffords of the world.

“Known as the Creative Capital of the World, the city of Los Angeles and the people who call it home have always been pioneers, pushing the boundaries and innovating as the undeniable global leaders of culture and entertainment,” said Crypto.com Co-Founder and CEO, Kris Marszalek.

“We’re very excited about partnering with AEG and investing long term in this city, starting with Crypto.com Arena in the heart of downtown, and using our platform in new and creative ways so that cryptocurrency can power the future of world class sports, entertainment and technology for fans in LA and around the world.”

How many other commercial interests does Crypto.com have?

Crypto.com’s presence in the sporting industry has grown steadily over the past two years, with nine partnerships already established with professional organisations.

These are:

• Formula 1
• Serie A
• Fnatic
• UFC
• Montreal Canadiens
• Paris Saint-Germain
• Aston Martin
• Philadelphia 76ers
• TwitchRivals

A message from the editor:

Thank you for reading. NationalWorld is a new national news brand, produced by a team of journalists, editors, video producers and designers who live and work across the UK. Find out more about who’s who in the team, and our editorial values. We want to start a community among our readers, so please follow us on Facebook, Twitter and Instagram, and keep the conversation going. You can also sign up to our email newsletters and get a curated selection of our best reads to your inbox every day.