Crypto.com a hit or the next failed ENSOGO?
Good morning Lions I trust you are safe and well and getting through the mid week slump.
There has been some significant hype recently with news breaking that the Los Angeles Staples Centre named after the Massachusetts office supply company who paid $US100 million for naming rights in 1999 will be changing to Crypto.com Arena who just paid $US700 million for a 20 year naming rights source
The company's Chief Executive Officer, Kris Marszalek (remember that name as we will return to it shortly) stated that "If I had to pick one place to have naming rights, it would be Staples Center,” in the world’s cultural capital" The change is going to take effect on 25 December 2021. It isn't their first sponsorship as the company has been pursuing many sponsorship opportunities across the sector but this is their largest to date. The breaking news saw the Crypto.com native token CRO climb from $US0.39c to $US0.51c (at time of writing).
What is Crypto.com?
Crypto.com isn't a new project it was founded in 2016 as Monaco Technologies GmbH by a group of friends Gary Or, Bobby Bao, Kris Marszalek and Rafael Melo and officially launched in November 2018. They seek to drive global adoption of crypto currency to replace modern day banking and have developed a block chain that enables trading, NFT market place and payments. They further seek to streamline crypto payments and will work with merchants to accept CRO as payment for service source.
After five years remaining relatively dormant the project was reignited this year when in October they company went live with their mainnet and further had success when they were accepted for trading on Coinbase at the start of this month (November 2021).
A trail of destruction left in the companies previous business
Ensogo Founded by the current Crypto.com CEO Kris Marszalek and a string of other businesses aligned to Ensogo which originally traded on the Australian Stock Exchange as E88 collapsed in June 2016 as the CEO Kris Marszalek walked out and established Crypto.com leaving many business owners furious and seeking support from police for fraud as the company took hundreds of thousands of dollars source
image source
The Crypto.com CEO has both Ensogo and Crypto.com listed on his LinkedIn account which backs up allegations that the founder walked off and went straight into crypto.com. Ensogo also issued a notice to the Australian Stock Exchange (ASX) to place its stock under voluntary trading suspension to prevent mass sell offs at the news of the CEO's exit.
Kris Marszalek LinkedIN
Further issues embroiled the CEO as he was summond to Thailand as over 2000 Thai people were impacted by the flash sale and loss of funds with further impacted peoples residing in Hong Kong source
Rafael Melo LinkedIn
The other person which is mentioned throughout the troubled past is Rafael Melo who also joins the Crypto.com team.
At no point am I insinuating wrong doing has been committed and the project has been running for quite some time and the team continues to drive their vision. In my opinion from information provided in the media it does appear that Ensogo came under significant business issues and the team walked off leaving the company to further demise impacting many businesses across South Asia.
The hasty exit of Kris does not provide me personally with confidence that he will be able to lead the team should it experience set backs or able to operate in a competitive market.
The question that is on my lips is that Has Kris and the team learned from their past mistakes and able to battle it out in a highly competitive market or if the going gets tough will they just get up and leave?
What are your thoughts?
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