tl;dr
Crypto.com CEO Kris Marszalek is optimistic about the fourth quarter, anticipating a Federal Reserve rate cut and increased digital asset activity. He believes the Fed's potential rate cut could boost the company's revenue and drive a crypto market rally, similar to the 57% increase seen in 2023 f...
Crypto.com CEO Kris Marszalek is betting big on the fourth quarter, pinning his hopes on a Federal Reserve rate cut and a surge in digital asset activity. Speaking with Bloomberg, Marszalek hinted that the crypto exchange’s revenue could hit new heights this year, especially if the Fed follows through on its promise to ease monetary policy. “A strong Q4 is in the cards,” he said, citing the Fed’s Sept. 17 meeting as a key battleground for rate decisions.
The Fed’s last rate cuts—between September and December 2023—sparked a 57% rally in crypto markets as borrowing costs dropped and liquidity flowed into riskier assets. Now, the odds of another cut are looking favorable. CME futures prediction markets peg the probability of a rate cut at 91.7%, a sharp rise since Fed Chair Jerome Powell’s Jackson Hole speech in late August, where he signaled a potential pivot toward easier monetary policy.
Marszalek isn’t the only one watching the Fed closely. For crypto firms, lower rates mean cheaper loans, cheaper borrowing for projects, and a more hospitable environment for speculative bets. “When rates go down, crypto tends to do better,” he said, echoing a pattern that’s played out before.
While the Fed’s moves dominate the conversation, Marszalek’s own company is also making headlines. Despite being approached by top investment banks and boasting $1.5 billion in revenue last year, Crypto.com is holding off on an IPO. “We have the numbers to go public,” Marszalek admitted, “but we’re enjoying being private for now.” The firm’s $700 million reinvestment last year underscores its focus on growth, with Marszalek hinting that 2024 could be even better.
But the CEO’s ambitions don’t stop at crypto exchanges. He’s eyeing a new frontier: prediction markets. “We think prediction markets are going to be huge,” Marszalek said, emphasizing that the space extends far beyond sports betting. The company aims to become a liquidity hub for onshore U.S. prediction markets, a move that could disrupt existing players like Polymarket and Kalshi, which have faced regulatory hurdles in the U.S.
Meanwhile, Crypto.com’s native token, CRO, is riding a rollercoaster. A partnership with Trump Media and Technology Group—a deal that includes a treasury strategy for CRO—sent the token soaring 150% in early September. But the euphoria didn’t last. CRO has since retreated to $0.27, a 72% drop from its November 2021 all-time high of $0.98.
For now, Marszalek’s focus remains on the Fed, the Fed’s rate decisions, and the broader crypto landscape. Whether he’ll eventually take Crypto.com public or double down on prediction markets, one thing is clear: the fourth quarter could be a defining chapter for the company—and the crypto industry as a whole.
What do you think? Will a Fed rate cut be the spark that ignites a crypto rally? Or is the market already priced in for a more cautious 2024?