© Reuters. Crypto Firms Seek To Ride Out Crisis By Investing In Sports Sponsorships
- Despite the bear market of the past few months wiping out almost all of the profits from digital asset trading firms, the bet is still on.
- The crypto industry is competing for million-dollar investments in sports against traditional brands, including sportswear companies, soft drink companies, car manufacturers and others.
- Companies are looking to reach new audiences in the market and spread the use of cryptocurrencies among sports fans.
Betting on sports sponsorships by major global cryptocurrency trading firms continues despite the crypto winter that has evaporated around two-thirds of cryptocurrency market value this year.
Since last year, crypto industry giants such as Binance, Coinbase (NASDAQ:), Crypto.com and FTX have launched an aggressive sports-related marketing strategy. The objective is to try to match the investment made by other prestigious traditional brands in this sector.
Over the past 18 months, investments in sports sponsorships by crypto companies have totaled more than $2.4 billion, according to Bloomberg. It is a financial and logistical effort which, they hope, will have its juicy reward which will result in the massification and growth of the market.
The Crypto Industry Is Invading Sports Fields
Millionaire sports sponsorships have ceased to be exclusive to Adidas (OTC:), Nike (NYSE:), Coca-Cola (NYSE:), Mercedes Benz or any other traditional brand. Now, crypto exchanges have also entered the competition for a slice of the giant sports pie as they seek to increase their reach and popularity.
Whether in football, the NBA, Major League Baseball, Formula 1 or the Drone Racing League, the presence of digital asset trading companies is on the rise, following the signing of major sponsorship contracts with the professional sports leagues and teams around the world.
Assuming that it is precisely during crises that the most investment in advertising is needed, companies in the crypto industry have flooded gyms, team shirts and TV spots with allusions. of all kinds under their respective brands.
Opinion research suggests that mainstream sports fans are now twice as exposed to cryptocurrencies and other digital assets as non-fans. To recover from the financial crisis, win new audiences and revive their activities, the exchanges are on their way to becoming one of the biggest sponsors and advertisers in the sport.
Million Dollar Referral Offers
The biggest endorsement deal signed to date is with Crypto.com for $700 million. In September last year, the company acquired the 20-year naming rights to the Los Angeles Memorial Sports Arena, home of the Lakers, Sparks and Kings, now called Staples Center. Likewise, he ventured into F1 sponsorships.
Another major sponsorship deal was signed by FTX with Miami-Dade County in May 2021 to acquire the naming rights to the American Airlines (NASDAQ:) Arena. The 19-year deal will allow the exchange to be an official sponsor of the venue that is home to the Miami Heat basketball team.
Binance has signed million dollar deals with football stars such as Cristiano Ronaldo and African Cup of Nations clubs. While Coinbase recently signed an advertising deal with the NBA and top basketball players such as Kevin Durant.
on the reverse
- Web3 promises to become the next big wave of the internet and the crypto industry and elite sports are taking advantage of this circumstance to ensure its sustainability and solidify its presence.
Why You Should Care
- Sports leagues have discovered a new source of funding, while crypto companies are using sports for market expansion.
You can read other news related to sports sponsorships by crypto companies in the following articles:
How to invest strategically in sports
Cryptocurrency trading enters South American football
FTX partners with sports teams