The CEO of Crypto.com, Kris Marszalek, is confident that digital assets will be promoted in the fourth quarter of the year, mainly driven by the central bank of the United States reducing interest rates.
Marszalek said in an interview with Bloomberg on Tuesday that it is likely that Crypto.com’s income will be better this year, “especially if we see a Fed rates cut and a strong monitoring of the fourth quarter.”
He added that he is betting that the United States Federal Reserve reduces interest rates in its September 17 meeting, which is generally good for cryptography as loans become cheaper and there is more liquidity available for more risky investments.
The latest Fed rates cuts were between September and December last year, when it reduced the rates of 5.5% to 4.5%, which led to cryptography markets that earn 57% in those four months.
CME futures prediction markets show that the probability of a rate cut has increased to 91.7% after Jackson Hole’s speech from the president of the Fed, Jerome Powell, on August 22, when he insinuated to relieve monetary policy.
There is still no decision in IPO
Marszalek said his company “has the numbers” to make a public list, but enjoy being private and has not yet made a decision.
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“I have to admit that it is quite tempting to consider these options,” he said about a possible initial public offer. Multiple cryptographic companies have raised billions of dollars this year amid their public debuts.
He added that the company had $ 1.5 billion in revenues last year, and around $ 1 billion in gross profits with $ 700 million reinvest, before predicting that this year will be better.
“We have contacted us all the main names in terms of investment banks. We want to be a very well -managed company, so we are preparing everything, but no decisions have been made at this time.”
Adventure in prediction markets
Marszalek also revealed that the company was planning to enter the prediction market space. “We believe that the prediction markets will be huge,” he said, adding: “Sport is part of that, but it’s not all.”
“We want to be the liquidity center for prediction markets on the coast in the United States, so we will play in a very aggressive way in that space.”
Blockchain prediction markets are currently dominated by Polymarket and Kalshi, which have affected regulatory and legal obstacles in the offer of event contracts in the United States.
Cro increases Trump’s Media Association
Crypto.com announced an association with Trump Media and Technology Group, the owner of the Truth Social Platform of the President of the United States, Donald Trump, on August 26.
The agreement includes the establishment of a treasure strategy for the native token of the exchange, Cronos (Cro).
The Token shot almost 150% at $ 0.38 after the announcement, but since then it has been withdrawn at $ 0.27, 72% less than its November maximum of 2021.
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