Sports marketing

Crypto Firms Cut Sports Marketing Spend Amid Recent Market Crash

Following the recent crypto market crash, major cryptocurrency companies have started to preserve funds by cutting marketing costs.

What happened: Coinbase PIECE OF MONEY, Crypto.com CRO/USD and FTX FTT/USD experienced significant capital outflows following the recent stock market crash. According to Cryptonews, these companies subsequently reduced their spending on sports advertising and reduced their hiring.

Prior to the stock market crash, cryptocurrency companies were deploying large-scale funds for sports advertising. Remember how Super Bowl LVI featured big-name stars in crypto-related commercials – Larry David for FTX and LeBron James for Crypto.com. Coinbase and eToro have also spent millions on their respective advertisements.

why it matters: Following the recent fall in cryptocurrency prices, cryptocurrency companies have experienced a large outflow of funds, with a significant drop in their market capitalizations. Coinbase’s stock price is down 73.3% over the past year, currently at $59.85. Given the significant losses suffered by these firms, companies are going into capital preservation mode. Major companies, such as Gemini, Crypto.com and Coinbase, are now preparing for turbulent and bearish market conditions.

Meanwhile, Binance BNB/USD is against the trend. CEO Changpeng Zhao said in a tweet last week that there were 2,000 new hiring positions at the company.

Binance, billed as the world’s largest cryptocurrency exchange by traded volume, has also spent considerable sums on sports sponsorships and advertisements, sponsoring Brasileirão, Argentina Football, the Africa Cup of Nations and clubs. of Porto and Lazio football, among many other partnerships.