It’s not uncommon for good times to bring excellent outcomes. When things are harsh, the journey might become more difficult. There is no better example than crypto sports sponsorships, one of the fastest growing areas in major league sponsorship agreements, which this year saw a lack of new players entering the market.
In the wake of this year’s cryptocurrency market crisis, sports sponsorship arrangements are in jeopardy as crypto corporations attempt to slash expenses.
An anonymous source informed The New York Post that the cryptocurrency exchange FTX recently pulled out of discussions with the Major League Baseball team, the Los Angeles Angels, to offer a patch for their uniforms. One other patch agreement fell through lately, according to the sources, involving the NBA’s Washington Wizards and unnamed crypto business.
As a result of their recent success, a number of crypto exchanges purchased millions-dollar-plus Super Bowl advertising. There was one with Larry David in it that implied that the creation of crypto was as momentous in history as the wheel or coffee and that anybody who didn’t get it was a foolish. This was an FTX commercial. Investing in cryptocurrency was urged in another Crypto.com commercial that featured actor Matt Damon. In this article, we’ll give you additional information on how crypto betting and sports sponsorship are linked and what’s the current situation.
Crypto Betting And Sports Sponsorship
To others, the concept of cryptocurrency is still fiction. Some people believe that it is virtual money that doesn’t exist.
That may have been the case in the past when it was possible to trade crypto and swap it for fiat cash, but there was no means to use the coin itself to do transactions. Cryptocurrency’s development trajectory has shifted dramatically, and it now involves expansion into every sector as a means of making payments and promoting it as such – a new means of trading and spending money.
Investing in sports sponsorships by blockchain businesses is expected to reach US$5 billion by 2026, according to a report by analytics company Nielsen. This is because the number of people who want to start betting crypto increases over time as a result of the expanding crypto popularity. Licensing cryptocurrency sponsorships is expected to be a lucrative business model in the future, according to research on global sports marketing in 2022.
Sports stars in the modern day have a large army of consultants to help them plan for the future, including a large quantity of investment advice.
While real estate is still a popular investment, Bitcoin is a newer investment option that is drawing players and teams alike in 2022.
Sponsorships are a great method to attract new customers and possible investors to your company. Sporting sponsorships and marketing partnerships are a lucrative route for cryptocurrency, which has a strong connection to gambling sites that now accept crypto as a form of payment.
Coinbase’s sponsorship of the NBA was one of the most talked-about deals. The NBA announced a multi-year contract with Coinbase as the official cryptocurrency sponsor for all games.
Compared to 2021, the analysis predicts a 778 percent growth in cryptocurrency, blockchain, and NFT sports sponsorship spending. The IT software and hardware sector had a gain of 44%, which is the second biggest. There is predicted to be a seven percent increase in retail, automobile, and energy sponsorship spending.
Is The Bubble Of Crypto Sponsorship Burst Yet?
In January 2022, the cryptocurrency market had a total market value of nearly US$2 trillion. Since then, the market has fallen by around 55%. An extended period of reduced crypto pricing, known as a “crypto winter,” has entered the market.
The FTX decision to withdraw from discussions with the MLB’s Angels was one of several highlighted in a new story published this week by the NY Post. There are reports that an unidentified crypto corporation followed a similar method when it came to an NBA contract with the Washington Wizards, according to the New York Post. FTX executives criticized the Post’s context, saying that the “opportunity with the Angels was explored months ago and we refused early on… this choice was not taken as a consequence of the market slump.” They responded.
As of now, the whole globe is awaiting the outcome of the cryptocurrency market. Since crypto exchanges are in such a precarious financial position, it’s very doubtful that any big sports leagues would sign agreements with them. In 2022, we won’t see the same accords that were inked in 2021.
In the last few weeks, a number of cryptocurrency exchanges have announced massive layoffs. BitPanda, Austria’s first-ever and online financial unicorn, said it will cut its workforce from over 1,000 employees to 730.
Even if the price of mainstream cryptos continues to decrease or stay flat, current partnerships with big players are unlikely to go through in the months to come. However, new transaction expectations should be kept in check until the market recovers to its pre-crisis condition.
