By
Bena Ilyas
April 23rd, 2024
Ranking as one of the most bogus ad spenders in the space, Crypto.com has cut back on these and the impact is the result of the boycott of the deal with UEFA.
Singapore-based cryptocurrency trading platform, Crypto.com has reportedly pulled out of a mega deal to be the chief sponsor of the UEFA Champions League football competition. According to the Sports Business platform which first broke the news, the deal was valued at 100 million Euros or $99 million per season and was expected to run for 5 seasons.
The total value of the deal was pegged at $495 according to the report. UEFA was previously majorly sponsored by Russian energy giant, Gazprom, but the football body terminated the deal back in March in response to the invasion of Ukraine by Russia. The negotiations between UEFA and Crypto.com ensued afterward, but the termination became inevitable considering the negative impacts of the crypto winter.
Crypto.com is a major digital currency trading platform that prioritizes marketing and avenues that can help promote its business outlook.
It stands by far as one of the exchanges with functional partnerships with sports brands around the world. Besides being named as a crypto exchange partner in the forthcoming FIFA World Cup competition in Qatar, Crypto.com has secured the naming rights to the Crypto.com Arena in Los Angeles. The naming rights deal cost $700 million out of pocket.
Besides these mega deals, Crypto.com is also a recognized sponsor of Formula 1 and the Philadelphia 76ers NBA team. The marketing budget of the trading platform also pushed it to launch an ad named Fortune Favors the Bold, featuring Hollywood star, Matt Damon. The ad was estimated to be worth $100 million at the time.
Changing Promotion Scenario
The advent of the crypto winter changed the narrative a great deal for most major players in the digital currency ecosystem. While some heavyweight lenders like Celsius Network, Voyager Digital, Zipmex, and Vauld Group amongst others went bankrupt, exchanges like Crypto.com had to cut down their spending in a very considerable manner.
Ranking as one of the most bogus ad spenders in the space, Crypto.com has cut back on these and the impact is the result of the boycott of the deal with UEFA.
In the heat of the crypto winter, Crypto.com has had to conduct two different sets of staff layoffs as a means to cut costs. While other exchanges like Gemini and Coinbase Global Inc (NASDAQ: COIN) have also laid off staff, the exchange, in particular, has been slammed for this in particular as critics faults the non-conservative nature of the trading firm in ads and promotions at the expense of maintaining a robust workforce.
While the exchange still has a number of its partnerships in place, it remains to be seen whether it will be able to renew some of them when the deal expires.