Crypto companies seek to overcome the crisis by investing in sports sponsors from DailyCoin
© Reuters. Crypto companies seek to overcome the crisis by investing in sports sponsorships- Despite the bear market of recent months that has wiped out almost all profits from digital asset trading companies, the stakes are still on.
- The crypto industry is competing for multimillion-dollar investments in sports against traditional brands, including sportswear companies, soft drinks companies, car manufacturers and others.
- The companies seek to reach new target groups in the market and spread the use of cryptocurrencies among sports fans.
The bet on sports sponsorship by major global cryptocurrency trading companies continues despite the crypto winter that has evaporated around two-thirds of the market value of cryptocurrencies this year.
Since last year, crypto industry giants such as Binance, Coinbase (NASDAQ:), Crypto.com and FTX have launched an aggressive marketing strategy related to sports. The aim is to try to match the investment made by other prestigious traditional brands in this sector.
Over the past 18 months, investments in sports sponsorship 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 massification and growth of the market.
The crypto industry is invading sports fields
The millionaire sports sponsorships ceased to be exclusive to Adidas (OTC:), Nike (NYSE: ), Coca-Cola (NYSE: ), Mercedes Benz or another traditional brand. Now, crypto exchanges have also entered the race for a piece of the giant sports pie, as they seem to grow in 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 increasing, following the signing of important sponsorship contracts with leagues and professional sports teams around the world.
Under the premise that it is precisely during crises that one should invest most in advertising, companies in the crypto industry have flooded sports arenas, team jerseys and TV spots with all kinds of allusions to their respective brands.
Opinion polls suggest that mass sports fans now have twice as much exposure to cryptocurrencies and other digital assets as non-fans. To recover from the economic downturn, win over new audiences and relaunch their businesses, the exchanges are on the way to becoming some of the biggest sponsors and advertisers in sports.
Million Dollar Sponsorship Deals
The largest endorsement deal signed so far is with Crypto.com for $700 million. Last September, the company bought the 20-year naming rights to the Los Angeles Memorial Sports Arena, home of the Lakers, Sparks and Kings, now called the Staples Center. Similarly, it has ventured into F1 sponsorship.
Another major sponsorship deal was signed by FTX with Miami-Dade County in May 2021 to acquire the naming rights to 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 multi-million deals with top soccer stars such as Cristiano Ronaldo and clubs from the African Cup of Nations. While Coinbase recently signed an advertising deal with the NBA and prominent basketball players such as Kevin Durant.
On the other side
- Web3 promises to be the next big wave of the internet, and both the crypto industry and elite sports are taking advantage of this circumstance to ensure sustainability and consolidate their 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 sponsorship from crypto companies in the following articles:
How to invest strategically in sports
Cryptocurrency trading enters South American soccer
FTX cooperates with sports teams
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