New York Post relevă that cryptocurrency companies are cutting costs by pulling out of sponsorship and marketing deals as the crypto market crashed to its lowest in almost two years.
FTX pulls out of sports deal
Schimb criptografic de frunte FTX, one of the biggest ad spenders in the industry, pulled out of a deal with Los Angeles Angels, which would have seen it have a patch on the MLB team jersey.
FTX plătit $135 million to buy the naming rights to Miami Heats stadium in 2021, among other marketing moves.
Sources also confirm that a patch deal between NBA Washington Wizards and a crypto company has now been canceled. Some believed the deal would have been strategic, considering regulators who oversee the crypto space attend Wizards games.
However, it appears that the crypto companies are choosing self-preservation over advertising, especially with the crypto market cap falling below $1 trillion.
Have the crypto ads been successful?
Almost every major cryptocurrency company spent massively on crypto ads and endorsements in 2021 and early this year.
Their spending peaked with the Reclame pentru Super Bowl in February, where at least three major crypto exchanges paid huge fees for a slot during the biggest sporting event on U.S. television.
However, the effects of the spending apărea to be minimal as the industry did not witness an influx of retail investors as it envisaged.
Big spenders like Coinbase and Crypto.com have concediați angajați, blaming the current market downturn for their decisions.
However, FTX, another of the big spenders, is not laying off employees as its CEO Sam Bankman-Fried said that the firm could keep growing regardless of the market conditions.
12) Și pentru că ne-am angajat cu atenție, putem continua să creștem indiferent de condițiile pieței.
Pentru că ne-am mărit exponențial veniturile și productivitatea, nu cheltuielile.
Dar, mai important, pentru că fiecare persoană pe care o adăugăm își asumă o oportunitate uriașă și o responsabilitate uriașă.
- SBF (@SBF_FTX) 6 Iunie, 2022
Între timp, Binance CEO Chanpeng Zhao recently a anunțat that the company will hire 2000 additional staff because it did not go on an ad-spending splurge like its competitors.
Source: https://cryptoslate.com/crypto-companies-pull-out-of-sponsorship-deals-amid-market-downturn/