Thursday, June 20, 2024
HomeAltcoinsCryptocurrency firms are pulling out of sponsoring arrangements

Cryptocurrency firms are pulling out of sponsoring arrangements

On June 21, the leading cryptocurrency exchange FTX, one of the industry’s top marketing spenders, backed out of an agreement with the Los Angeles that would have seen it have a patch on the MLB club jersey.

FTX spent $135 million for the naming rights to the Miami Heat stadium in 2021, among other marketing efforts.

Sources also reveal that a patch agreement between the NBA’s Washington Wizards and a cryptocurrency startup has been terminated. Some speculated that the transaction would have been strategic, given that authorities who supervise the crypto industry attend Wizards games.

It seems that cryptocurrency firms are prioritising self-preservation before promotion, particularly when the crypto market size falls below $1 trillion.

Almost every big cryptocurrency firm spent a lot of money on cryptocurrency advertisements and endorsements in 2021 and early this year.

Their expenditure peaked with the Super Bowl advertising in February, when at least three major cryptocurrency exchanges paid exorbitant amounts for a spot during the most watched sports event in the United States.

The impacts of the expenditure seem to be minor, since the sector did not see the anticipated surge of individual investors.

Big spenders like Coinbase and Crypto.com have cut off personnel, basing their actions on the current market collapse.

However, FTX, another major spender, is not laying off workers since CEO Sam Bankman-Fried said that the company could continue to develop regardless of market circumstances.

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Jeewan Singh
Jeewan Singh
Jeewan Singh is CryptoShrypto’s content writer and a seasoned writer with over two years of experience in writing about Indian Securities Market. Jeewan's participation in Blockchain and Cryptocurrency started in late 2020, and he hasn't looked back since. The technical and economic outcomes of cryptocurrency are what spark his curiosity, and he keeps one eye on the market.
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