Despite the bear market or the running crypto winter, the crypto companies are actively investing in sports sponsorships. The crypto bear market has been hailing for the past couple of months. This has wiped off most profits from digital asset trading firms. However, this could not scare off the cryptocurrency companies from making any further advancements.
It has been noted that crypto companies are betting big on sports sponsorships. They are engaging in million-dollar investments against traditional brands including soft drink companies, sportswear companies, car manufacturers, and more.
Since last year, various crypto industry giants like Coinbase, Binance, FTX, and Crypto.com have launched energetic marketing strategies on sports. They aim to match the investment made by several other traditional brands in this specific sector. As evaluated by Bloomberg, in the last 18 months, sports sponsorship investments by the crypto companies combined over 2.4 billion dollars. This is both a financial and logistical effort that they anticipate having a great outcome in the growth and massification of the market.
Cryptocurrency Industry Occupies Sports
Earlier, million-dollar sports sponsorships were limited to exclusive brands such as Coca-Cola, Nike, Mercedes Benz, Adidas, or other traditional brands. Now, cryptocurrency exchanges have also entered the competition. This is owing to the fact that they are currently looking forward to increasing their reach and popularity.
The presence of digital asset trading companies is on the rise despite the kind of sports. They are even seen in drone racing sports in addition to car racing. Some of the most common examples are NBA, football, Major League Baseball, Formula 1, etc. Cryptocurrency companies sign crucial sponsorship contracts with professional sports teams and leagues worldwide.
When the crypto companies are required to present themselves in advertisements, they choose to flood the sports venues, team jerseys, and television spots with various kinds of their team’s citations. Additionally, the opinion research states that the fans of these sports and teams have better exposure to cryptocurrencies than the non-fans through the entry of cryptocurrency sports sponsorship. Thus, to recover from the crypto winter, the cryptocurrency exchanges are gaining new audiences and relaunching their businesses. They are seen as some of the biggest advertisers and sponsors in the sports arena.
Million Dollar Sports Sponsorship Deals By Crypto Companies
Crypto.com’s $700 million endorsement deal (cryptocurrency sports sponsorship) is probably the largest one so far. In September 2021, the company acquired the 20-year-old naming rights to the Angeles Memorial Sports Arena, home to the Lakers, Sparks, and Kings, now called the Staples Center. Similarly, it has also ventured into F1 sponsorships.
Another notable deal was signed by the FTX exchange with Miami-Dade County in May 2021 to acquire the naming rights to the American Airlines Arena. This is a 19-year-old deal permitting the exchange to be an official sponsor of the venue of the Miami Heat basketball team.
Similarly, Binance has also signed million-dollar crypto sports sponsorships with reputed soccer celebrities such as Cristiano Ronaldo as well as the clubs from the African Cup of Nations. Recently, Coinbase has signed an advertisement agreement with the NBA and eminent basketball players namely Kevin Durant.
Crypto companies are actively taking part in high-profile crypto sports sponsorships. The trend of web3 will also become the next big wave that both the crypto industry and the elite sports would be taking advantage of. They would be more focused on ensuring its sustainability and consolidating its presence. With these deals gaining popularity, the sports leagues now have a new source of funding while the cryptocurrency companies are taking complete advantage of this for their market expansion.