$2.4 Billion Spent in 18 Months: Crypto Companies Flock to Sports

in cryoto •  2 years ago 

In today’s sluggish crypto market, the total transaction volume of Opensea, once a dominant crypto player, in August was even less than its 24-hour volume record, and crypto companies are all looking for breakthroughs. Meanwhile, as the Qatar World Cup approaches, the price of the related fan tokens has edged up. According to CoinEx, a well-known crypto exchange, during the past 30 days, LAZIO has gone up by 126.41%, SANTOS up 178.88%, and PORTO up 106%.

image.png
image.png
image.png

Apart from that, crypto companies have made many moves in the sports industry. As reported by Bloomberg, crypto companies have committed more than $2.4 billion to sports marketing in the past 18 months. Today, let’s check out the crypto players that have sponsored sports events or organizations in 2022.

Early this year, Binance signed a 5-year sponsorship deal with Argentina’s National Soccer Team, and the agreement covers the development of a new fan token.

On February 10, Terra partnered with the Washington Nationals, an MLB team, in a sponsorship agreement.

On February 17, Bitget exchange announced its sponsorship deal with Turkish football club Galatasaray.

On March 4, Manchester City Football Club announced a global partnership with OKX, naming it the Club’s Official Cryptocurrency Exchange Partner. On July 11, the two announced an extension of their existing partnership.

On March 23, FIFA announced that Crypto.com, a crypto exchange, will become an official sponsor of the FIFA 2022 World Cup in Qatar.

On April 12, Bitget, a crypto derivatives exchange, announced its exclusive sponsorship with PGL CS:GO Major Championship 2022 and PGL Dota 2 Arlington Major 2022.

On April 14, Jerry Jones, General Manager of the NFL team Dallas Cowboys, announced that Blockchain.com will be a sponsor of the team at a press conference.

On May 3, Algorand announced its sponsorship and strategic partnership with FIFA. On the same day, OKX, a cryptocurrency exchange, entered into a multi-year partnership with McLaren Racing.

On May 9, Crypto Snack, a Barcelona-based decentralized payment network, announced that it signed a sponsorship deal with RCD Espanyol, a La Liga football club.

On May 10, Binance secured a partnership with Confederação Brasileira de Futebol (CBF) and entered into a three-year cooperation plan that covers the development of fan tokens and NFTs, as well as brand exposure.

On May 20, Coinbase announced an expanded investment within the Women’s National Basketball Association (WNBA) ecosystem.

On August 18, Bitget exchange renewed its partnership with Juventus Football Club.

Also worth mentioning is the recent news that CoinEx will be the Exclusive Cryptocurrency Trading Platform Partner of RLWC 2021.

image.png

From the green field through the basketball court to the racing track, crypto companies are all showing their wealth beyond the crypto sector. However, as the market declines and companies flock to sports, the expected marginal revenue of sponsoring sports events may fall below expectation.

For crypto companies, foraying into sports may help them attract different users, but regulatory risks will also rise. In the crypto market, regulation is the sword of Damocles hanging over all businesses. For instance, CZ revealed that Binance spent over $1 billion on compliance.

As crypto players burn their cash, this brand race seems to be coming to an end, as evidenced by FTX’s retreat from talks for the MLB Deal. Crypto.com also ditched its €500 million sponsorship deal with the European Champions League (UEFA) earlier this summer.

That said, branding and compliance have always been the focus of corporate growth in the crypto space. In terms of branding, crypto companies will adopt more new strategies in the future. As for compliance, founding teams must make sure that their companies act by rule.

It is noteworthy that CoinEx recently becomes licensed in Lithuania. Committed to “Making Crypto Trading Easier”, the exchange always seeks to make crypto trading more accessible, help more individuals around the world use crypto assets safely and conveniently, and positively contribute to society. Becoming licensed in Lithuania also marks a major milestone in CoinEx’s global strategic development.

We have good reason to believe that CoinEx will provide secure, convenient services for investors in more countries and regions around the world through its impressive track record in compliance and a strong compliance team. CoinEx: https://www.coinex.com

Disclaimer: This article offers no investment advice, and all statistics mentioned herein are for reference only. The information provided herein may not be relied upon for investment decisions, for which you will be fully liable.

Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE STEEM!