James Cirrone

Bybit has become the latest crypto exchange to exit Canada citing “recent regulatory development.”



In a Tuesday blog <a href="https://announcements.bybit.com/article/notice-on-exit-from-canadian-market-bltc1bfb8746d077fda/#">post</a>, Bybit told Canadians that by Wednesday, May 31, the entity would not be able to open accounts on its platform. Further, existing Canadian Bybit users will no longer be able to make deposits or trade after July 31. Bybit advised those users to close out their positions by September 30. After that, they will be liquidated.



This comes as <a href="https://blockworks.co/news/binance-leaving-canada">a myriad of other crypto exchanges are leaving Canada</a> because of the regulatory environment in the country. Notable exits to date include Binance, OKX, Paxos, dYdX and Bittrex.



Most coincide with the Canadian Securities Administrators urging crypto trading platforms to begin the process of registering with them or cease operations.&nbsp;



Under the CSA’s “pre registration undertakings,” firms have to agree to segregation in crypto custody, and they must have a chief compliance officer on staff. They must also eliminate leveraged trading and not allow users to trade or hold stablecoins.&nbsp;



Many firms that weren’t already registered with the state have decided to forego those requirements, which were due by March 23, and simply leave the country behind.



But not all exchanges have followed the same path, with some committed to succeeding in a regulated Canadian market.



<h2 class="wp-block-heading">Coinbase</h2>



The largest crypto exchange based in the US still wants a relationship with its neighbors to the north. More importantly, it wants a piece of Canada’s expected $1.42 billion in crypto revenue in 2023, per <a href="https://techcrunch.com/2023/05/16/canada-binance-coinbase-crypto-regulations/">Statista</a>.



Coinbase Canada signed a pre-registration undertaking (PRU) on March 24 and pledged to work with Canadian regulators to build a strong “regulatory framework.”



“We applaud the Canadian securities regulators’ efforts to bring clarity to the industry and look forward to continuing our collaboration with them on regulation that protects consumers while embracing innovation,” Coinbase wrote in a March 30 <a href="https://www.coinbase.com/blog/building-for-canada-and-the-world-from-canada">statement</a>.&nbsp;



Since then, Coinbase has continued to be effusive in its praise of Canadian regulators. For example, Nana Murugesan, Coinbase vice president of international and business development, <a href="https://www.coindesk.com/policy/2023/05/19/coinbase-praises-canadas-crypto-approach-as-us-regulatory-pressure-intensifies/">told</a> CoinDesk on May 19 that Canada’s approach is far better than America’s because in America, the rules aren’t clear.&nbsp;



“There’s a couple of ways we see regulators acting: one is regulation by engagement; the other one is regulation by enforcement,” Murugesan said. “The latter part is tough, because you don’t know what the rules are. But the Canadian regulator is definitely the former, which is regulation by engagement – which we love.”



<h2 class="wp-block-heading">Kraken</h2>



Like Coinbase, Kraken wasn’t content with abandoning the Canadian market. On March 30, Kraken <a href="https://blog.kraken.com/post/18260/kraken-remains-committed-to-canada/#:~:text=We%20are%20pleased%20to%20announce,with%20the%20Ontario%20Securities%20Commission.">announced</a> that it too had filed a PRU with regulators.



In its press release, Kraken pointed to an OSC survey from October 2022 that found that 31% of Canadians plan to buy crypto assets in the next year. Though, the <a href="https://www.osc.ca/en/news-events/news/osc-survey-explores-canadians-crypto-ownership-and-knowledge#:~:text=The%20average%20crypto%20asset%20knowledge,role%20in%20the%20financial%20system.">survey</a> also showed that nearly half weren’t planning on purchasing any sort of crypto in the next 12 months.&nbsp;



Gemini is another US-based crypto exchanges that has filed a PRU with the CSA. 



<h2 class="wp-block-heading">BitBuy</h2>



BitBuy is one of Canada’s top crypto exchanges and is based in the country, so it was brought under the regulatory umbrella earlier than Coinbase, Kraken and Gemini.



BitBuy was founded in 2016 and was the first trading platform to <a href="https://bitbuy.ca/updates/bitbuy-becomes-first-crypto-trading-platform-to-be-regulated-as-a-marketplace-in-canada#_ftn2">become</a> a regulated crypto marketplace and restricted dealer in Canada.&nbsp;



<h2 class="wp-block-heading">Shakepay</h2>



This Montreal, Canada-based crypto exchange filed a PRU with the CSA on March 24 like many others on the list.



Shakepay tweeted on Tuesday that it&#8217;s now a regulated exchange in Canada.&nbsp;



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">Big news, Shakepay is now regulated as a Restricted Dealer in Canada 🇨🇦! In addition, Shakepay is the first Quebec-based Crypto Asset Trading Platform to register. We’re committed to serving the Canadian market responsibly, and this registration is proof of that commitment.&mdash; Shakepay — Buy Bitcoin 🇨🇦 (@shakepay) <a href="https://twitter.com/shakepay/status/1663588513797791744?ref_src=twsrc%5Etfw">May 30, 2023</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



The Ontario Securities Commission has <a href="https://www.osc.ca/en/industry/registration-and-compliance/registered-crypto-asset-trading-platforms">listed</a> Shakepay as one of a number of firms that are permitted to offer crypto products to Ontario residents. Others include Fidelity Digital Assets, Coinsquare, and Newton Crypto.



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Bybit Latest to Flee Canada, but Not All Exchanges Are Leaving

Ben Strack

You’ve probably heard by now that crypto’s coming-out party on Super Bowl Sunday last year won’t be repeated.



If you hadn’t, you would have likely guessed, given the struggles endured in 2022 by many of the industry’s largest players.&nbsp;



But that doesn’t mean viewers won’t get a taste of Web3 this time around.&nbsp;



Mark Evans, Fox Sports’ executive vice president of ad sales, told <a href="https://apnews.com/article/kansas-city-chiefs-philadelphia-eagles-super-bowl-sports-fox-corp-5d9922047c7fb640ddbf8caf5100ece2" target="_blank" rel="noreferrer noopener">AP</a> this week that two crypto advertisers had commercials “booked and done,” adding that two others were close behind.  



But those deals fell through, he said, after the crash of FTX, which <a href="https://blockworks.co/news/whats-next-for-ftx-and-its-customers-after-bankruptcy-filing">filed for bankruptcy</a> in November. The exchange was among the crypto companies to run a Super Bowl ad in 2022.



A great deal has changed for the industry since — including for other digital asset advertisers during last year’s big game.&nbsp;



Coinbase and <a href="https://crypto.com/company-news/company-update" target="_blank" rel="noreferrer noopener">Crypto.com</a> have <a href="https://blockworks.co/news/coinbase-lays-off-950-staff-cuts-operational-costs-by-25">taken steps to cut costs</a>. Trading platform eToro <a href="https://blockworks.co/news/whos-coughing-up-crypto-winter-dollars-for-super-bowl-ads">told Blockworks</a> last month it chose not to buy a spot this year. And crypto exchange OKX, which <a href="https://blockworks.co/news/what-crypto-super-bowl-ads-can-we-expect-in-2023">was planning a commercial</a>, ultimately opted out of the bear market splurge.



Crypto exchange <a href="https://blockworks.co/news/bitbuy-shifts-super-bowl-ad-focus">Bitbuy bought an ad</a> to run sometime within an hour before the Kansas City Chiefs and Philadelphia Eagles kick off, but only viewers in Canada will see it.



Silvia Lacayo, head of Americas marketing at crypto exchange Bitstamp, said many crypto firms are putting marketing efforts on pause. What’s more pressing for those companies, Lacayo told Blockworks, is looking for educational opportunities to make people feel more comfortable using cryptocurrencies.



&#8220;Crypto firms are focusing less on crypto advertising and more on investing in better user experiences, products, and customer service,” Lacayo said. “The tone has shifted towards Web3-driven fan engagement over crypto-specific advertising.&#8221;



An Intuit-sponsored virtual concert starring hip-hop artist Saweetie, for example, was set to <a href="https://www.nfl.com/news/nfl-saweetie-intuit-bring-first-ever-super-bowl-concert-to-roblox" target="_blank" rel="noreferrer noopener">debut</a> on Friday on gaming platform Roblox, the NFL revealed last week. It is set to re-air every hour until Super Bowl Sunday.



And NFTs, a once little-known acronym that entered the mainstream in 2021, are set to step back into the light amid the crypto winter.&nbsp;



Utah-based Web3 company Limit Break said in October that it bought a Super Bowl ad for $6.5 million.&nbsp;



Founded by mobile game creators Gabriel Leydon and Halbert Nakagawa, Limit Break is known for creating DigiDaigaku, a digital collectible series of anime-style characters.&nbsp;



The company’s spot — slated to air during the game’s first commercial break — will feature a QR code directing viewers to sign up for a chance to own a DigiDaigaku Dragon NFT, the company said.&nbsp;



“Having this ad is exciting for us because prior to the Super Bowl, there’s going to be millions of people who have never heard of an NFT,” Leydon previously told Blockworks.  



The ad culminates a free mint whitelist opportunity launched last month. Supply of the NFT collection, according to the company,  is “extremely limited.”



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Super Bowl Crypto Ads Lacking, but NFTs Have a Spot

Canadian crypto exchange Bitbuy’s upcoming Super Bowl ad has a different vibe than the company’s 2022 spot after an eventful year shook the industry.&nbsp;&nbsp;



Bitbuy is expected to be <a href="https://blockworks.co/news/whos-coughing-up-crypto-winter-dollars-for-super-bowl-ads">among the only crypto firms</a> set to advertise around the NFL championship game on Feb. 12 as companies in the space cut budgets and look to regroup as the crypto winter continues.



Of last year’s crypto advertisers, FTX <a href="https://blockworks.co/news/whats-next-for-ftx-and-its-customers-after-bankruptcy-filing">went bankrupt</a> and online brokerage eToro told Blockworks it won’t be running an ad. Coinbase last month implemented <a href="https://blockworks.co/news/coinbase-lays-off-950-staff-cuts-operational-costs-by-25">cost-saving measures</a> and exchange OKX, which <a href="https://blockworks.co/news/what-crypto-super-bowl-ads-can-we-expect-in-2023">planned to buy an ad</a>, has changed its mind.



The Bitbuy ad, which <a href="https://www.youtube.com/watch?v=02ivqdVzwS8" target="_blank" rel="noreferrer noopener">went live</a> online Thursday, will be the firm’s second consecutive Super Bowl showing. NBA star Kyle Lowry appeared in <a href="https://www.youtube.com/watch?v=aI3LNq_lres&amp;t=2s" target="_blank" rel="noreferrer noopener">the company’s ad</a> last year featured during the game’s Canadian broadcast. 



Bitbuy’s upcoming 60-second commercial, also to appear only in Canada, is set to run within an hour before the Kansas City Chiefs and Philadelphia Eagles kick off.&nbsp;



Crypto markets plummeted amid the collapse of Terra’s algorithmic stablecoin in May and the subsequent bankruptcies of companies such as <a href="https://blockworks.co/news/3ac-files-for-bankruptcy-as-co-founders-location-unknown" target="_blank" rel="noreferrer noopener">Three Arrows Capital</a>. The industry was once again rattled as FTX crashed in November, shaking confidence in centralized exchanges and similar entities. 



“Whereas the theme for Bitbuy&#8217;s 2022 commercial was missed opportunities, 2023&#8217;s theme is trust,” Binu Koshy, Bitbuy’s branding and communications director, told Blockworks.&nbsp;



“We wanted to remind people in a sort of outlandish way that by being locally based and fully regulated, Bitbuy provides investing services with a personal touch.&#8221;&nbsp;



The new Bitbuy spot features Toronto Raptors forward Scottie Barnes, who Bitbuy <a href="https://www.youtube.com/watch?v=2AjDKl6h_vA" target="_blank" rel="noreferrer noopener">marketed</a> as a brand ambassador Tuesday.



Exchanges typically send a confirmation email to a user who makes a digital transaction. In the upcoming Super Bowl commercial, Barnes gives a Bitbuy user a confirmation hug.&nbsp;



Koshy declined to comment on how much Bitbuy spent on the commercial.&nbsp;The executive previously <a href="https://blockworks.co/news/exchanges-compete-to-grab-super-bowl-spotlight">told Blockworks</a> that roughly 25% of the company’s 2022 marketing budget went to signing Lowry, as well as producing and buying last year’s Super Bowl ad.



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Bitbuy Shifts Super Bowl Ad Focus From ‘Missed Opportunities’ to ‘Trust’

Despite rocky digital asset markets, a couple crypto-related firms are set to soon shell out Super Bowl ad dollars — though another would-be buyer of one of the coveted slots has pulled back.&nbsp;



Overall representation from the sector’s companies during the NFL’s championship appears to be shaping up as muted, though. That’s especially true compared to last year’s display, when FTX, Crypto.com, Coinbase and eToro all touted television spots.&nbsp;&nbsp;



Viewers can safely assume FTX won’t be running a Super Bowl ad.



The bankrupt exchange — whose founder, Sam Bankman-Fried is under <a href="https://blockworks.co/news/sbf-wont-actually-pay-250m-for-his-bail-bond">house arrest</a> — in <a href="https://www.youtube.com/watch?v=x_VZpH9dG2o" target="_blank" rel="noreferrer noopener">its commercial</a> last February featured the comedian Larry David, who implied the company was doomed to fail.



Ironic.&nbsp;&nbsp;&nbsp;



LeBron James appeared in <a href="https://www.youtube.com/watch?v=FUygWsIj_GU" target="_blank" rel="noreferrer noopener">Crypto.com’s ad</a> during last year’s title game. <a href="https://www.youtube.com/watch?v=eIUD_NE1BDo" target="_blank" rel="noreferrer noopener">Coinbase’s spot</a> was simpler, displaying a floating QR code box directing people to a promotional page that temporarily spurred traffic-fueled <a href="https://blockworks.co/news/super-bowl-ads-spark-public-interest-coinbase-site-crashes-from-traffic">connection issues</a>.&nbsp;



Crypto.com declined to comment on its Super Bowl plans this time around. The firm has become one of many industry players <a href="https://blockworks.co/news/crypto-com-cutting-5-of-workforce-amid-digital-asset-downturn">to cut staff</a> as markets have tanked.&nbsp;



Coinbase — which itself took <a href="https://blockworks.co/news/coinbase-lays-off-950-staff-cuts-operational-costs-by-25">cost-cutting measures</a> earlier this month — did not return a request for comment.



Social investing network eToro, which <a href="https://www.youtube.com/watch?v=7O4rP3qwlfo" target="_blank" rel="noreferrer noopener">ran an ad</a>, too, is not taking part this year, a spokesperson told Blockworks.



“We dial up or down specific channels based on many factors including market conditions,” the representative said in a statement. “We&#8217;re building for the long-term and will continue to invest heavily in marketing and in building brand awareness in our key markets, including the US.”



<h3 class="wp-block-heading">What about others?</h3>



Canadian crypto exchange Bitbuy is set to follow up <a href="https://www.youtube.com/watch?v=aI3LNq_lres" target="_blank" rel="noreferrer noopener">last year’s ad</a>, which featured NBA star Kyle Lowry, with a spot that introduces a new brand ambassador.



Binu Koshy, Bitbuy’s branding and communications director, declined to identify the celebrity — beyond dropping the hint that he is “one of the NBA&#8217;s most popular rising stars.”


<div class="wp-block-image">
<figure class="aligncenter size-large"><img loading="lazy" decoding="async" width="1024" height="682" src="https://blockworks-co.imgix.net/wp-content/uploads/2023/01/220917-RV-BitBuy-Ad-BTS-6352-1024x682.jpg" alt="" class="wp-image-44903" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2023/01/220917-RV-BitBuy-Ad-BTS-6352-1024x682.jpg?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2023/01/220917-RV-BitBuy-Ad-BTS-6352-1024x682.jpg?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2023/01/220917-RV-BitBuy-Ad-BTS-6352-1024x682.jpg?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2023/01/220917-RV-BitBuy-Ad-BTS-6352-1024x682.jpg?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2023/01/220917-RV-BitBuy-Ad-BTS-6352-1024x682.jpg?w=386 386w, https://blockworks-co.imgix.net/wp-content/uploads/2023/01/220917-RV-BitBuy-Ad-BTS-6352-1024x682.jpg?w=392 392w, https://blockworks-co.imgix.net/wp-content/uploads/2023/01/220917-RV-BitBuy-Ad-BTS-6352-1024x682.jpg?w=329 329w, https://blockworks-co.imgix.net/wp-content/uploads/2023/01/220917-RV-BitBuy-Ad-BTS-6352-1024x682.jpg?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2023/01/220917-RV-BitBuy-Ad-BTS-6352-1024x682.jpg?w=1772 1772w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption class="wp-element-caption">Bitbuy&#8217;s Super Bowl ad set. Bitbuy covered the NBA player&#8217;s face with an emoji for the time being. | Source: Bitbuy</figcaption></figure></div>


The firm’s new 60-second spot is set to appear on the Canadian broadcasts of the title game — shown on the networks CTV and TSN — within an hour before kick-off. He did not share how much the company paid for the ad.&nbsp;



The messaging will be different from last year’s spot, which was designed to establish the company’s brand in Canada before larger players fully entered the market, Koshy said.&nbsp;&nbsp;&nbsp;



“One year later, the landscape has completely changed,” Koshy told Blockworks. “As more and more unlicensed international crypto exchanges target Canadians, we wanted to remind people that Bitbuy is 100% Canadian, fully regulated and transparent.”&nbsp;



Blockchain gaming company Limit Break said in October it bought a Super Bowl ad for $6.5 million, adding that the television spot would feature its <a href="https://opensea.io/collection/digidaigaku" target="_blank" rel="noreferrer noopener">DigiDaigaku</a> NFT collection. The company gave away the collection during a free mint in August around the time the Limit Break raised $200 million.



“Having this ad is exciting for us because prior to the Super Bowl, there’s going to be millions of people who have never heard of an NFT,” Limit Break co-founder Gabriel Leydon <a href="https://blockworks.co/news/what-crypto-super-bowl-ads-can-we-expect-in-2023">told Blockworks</a> at the time.&nbsp;



Leydon more recently <a href="https://venturebeat.com/games/limit-break-will-do-free-nft-mint-during-super-bowl-commercial/" target="_blank" rel="noreferrer noopener">told GamesBeat</a> the commercial would include a QR code directing players to apply for a free NFT mint.&nbsp;



The company did not return a request for additional comment.&nbsp;



Crypto exchange OKX, meanwhile, has had a change of heart.&nbsp;



OKX Chief Marketing Officer Haider Rafique told Blockworks in October the company was planning on buying a spot for the Super Bowl, adding that the commercial could cost more than $10 million.&nbsp;&nbsp;&nbsp;



The executive said at the time the exchange’s <a href="https://www.youtube.com/watch?v=6U2Nai5xVvA" target="_blank" rel="noreferrer noopener">“What is OKX?”</a> campaign was a preamble to its 2023 marketing efforts. Rafique added the potential Super Bowl spot could focus on OKX’s self-custodial Web3 wallet.&nbsp;



A few weeks later crypto markets were once again rattled as FTX collapsed, shaking confidence in centralized exchanges and similar entities.&nbsp;



OKX has decided not to pursue a Super Bowl ad this year. 



&#8220;The crypto marketing landscape has changed significantly since last year&#8217;s Super Bowl, in large part due to the continued fallout from the FTX implosion,&#8221; Rafique told Blockworks. &#8220;We think that consumers are responding better to sustained campaigns that emphasize transparency and trust. This is what we&#8217;re focusing on because it fits the current market sentiment and our strategy best right now.&#8221;



Updated Feb. 1, 2023 at 1 pm ET: Added quote from OKX Chief Marketing Officer Haider Rafique.



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Who’s Coughing Up Crypto Winter Dollars for Super Bowl Ads?

<div id="highlights-block_62c86daa6abc1" class="highlights">
 <ul>
 <li>Bitbuy is targeting older investment-savvy people who have yet to jump into crypto</li>
 <li>Investment in sports partners is meant to be market agnostic, OKX marketing executive says</li>
 </ul>
 
</div>



As some crypto companies implement cost-saving measures amid a tempestuous market environment, a few bigger spenders are doubling down on advertising investments.



But the market downturn has caused the marketing department at crypto exchange Bitbuy to temporarily shift its marketing spend from brand-building initiatives to more performance-based advertising, according to Binu Koshy, the company’s communications director.



Such efforts include Google ads targeting older investment-savvy people who have yet to jump into crypto, as Bitbuy data shows that the latest downturn has attracted such investors. The median age of new crypto investors on Bitbuy has jumped from 34 in 2018 to 39 this year, including a three-year increase over the past 12 months.



“Knowing that older investors have more capital to invest and also prefer a personal touch, we shifted our marketing spend and messaging to promote Bitbuy Private Wealth, which caters to higher-net-worth individuals who prefer to deal with a personal account manager to make their crypto trades — a key competitive advantage that Bitbuy offers,” Koshy told Blockworks.



The Canada-based platform’s marketing shift comes after it ran a <a href="https://www.youtube.com/watch?v=aI3LNq_lres" target="_blank" rel="noreferrer noopener">Super Bowl ad</a> in February featuring Miami Heat point guard Kyle Lowry. About 25% of the company’s marketing budget for 2022 went to signing Lowry, as well as producing and buying the spot, <a href="https://cms.blockworks.co/exchanges-compete-to-grab-super-bowl-spotlight/" target="_blank" rel="noreferrer noopener">Koshy said at the time</a>.



Bitbuy has also adjusted its messaging in recent months as the 56% drop in bitcoin’s value during the second quarter resulted in what the firm has called a “crypto buyer&#8217;s market,” Koshy said. Prior to April 1, trading volumes on the Bitbuy platform were split evenly between buyers and sellers. Since then, about 65% are buyers.



In addition to targeting long-term investors not scared off by market fluctuations, Bitbuy is also focused on women.



More female Bitbuy users are buyers than men, especially within altcoins, as 70% of women transacting in that space are buyers, compared to 56% of men. Additionally, Bitbuy data from the past 4 years shows that the average crypto trade by women is 17% higher than men.&nbsp;&nbsp;



Meanwhile, investing platform eToro, another company that <a href="https://cms.blockworks.co/super-bowl-ads-spark-public-interest-coinbase-site-crashes-from-traffic/" target="_blank" rel="noreferrer noopener">advertised during this year’s Super Bowl</a>, plans to intensify its marketing strategy that focuses on online channels. It also intends to continue running television ads on channels such as CNBC.



The firm’s offerings are particularly appealing to millennial investors, which is reflected in eToro’s designs, a spokesperson said.



“We actively monitor all campaigns and can adjust spend based on effectiveness as well as market conditions,” eToro’s marketing head Brad Michelson told Blockworks in an email. “We will continue to invest in marketing and our brand in the US as this is a key market for eToro.&#8221;



<h3 class="wp-block-heading">Firms look to continuing partnerships&nbsp;</h3>



Another big marketing spender has been crypto exchange OKX, which <a href="https://cms.blockworks.co/crypto-exchange-okx-inks-f1-mega-deal/" target="_blank" rel="noreferrer noopener">partnered with McLaren Racing</a> in a multi-year deal worth “hundreds of millions,” a spokesperson told Blockworks in May.



Haider Rafique, global chief marketing officer at OKX, told Blockworks that the company’s investment in sports partners is meant to be market agnostic, noting that its marketing spend will not change.



“Our principles and beliefs remain the same; we are focused on education and creating a generation of traders and investors who think like athletes, and think responsibly about their investing career,” Rafique said. “In fact, we see this time as a more favorable, less noisy environment in which to make progress towards that intention.”



The CMO added that OKX has no plans to back out of any partnerships, noting instead that the company would “scale up responsibly and announce new things in the coming months.”



Similarly, Koshy said Bitbuy is finalizing some partnerships set to launch in the fourth quarter and 2023.&nbsp;



Crypto exchange FTX, however, reportedly pulled out of talks last month to provide a jersey patch to the MLB’s Los Angeles Angels amid the latest crypto market volatility, <a href="https://nypost.com/2022/06/20/ftx-other-crypto-firms-ditch-sports-deals-as-market-collapses/" target="_blank" rel="noreferrer noopener">according to the New York Post</a>.&nbsp;



But the company’s discussions and decision to pass on the Angels deal happened months prior contrary to recent reports and were not due to the recent market downturn, a spokesperson told Blockworks.&nbsp;



FTX has invested heavily in brand awareness, <a href="https://cms.blockworks.co/ftx-inks-135m-sponsorship-deal-for-miami-heat-arena/" target="_blank" rel="noreferrer noopener">paying $135 million for the naming rights</a> to Miami Heat’s arena in 2021 and partnering with high-profile athletes over the past year. The company is also sponsoring chess events, including the Meltwater Champions Chess Tour’s FTX Crypto Cup in August.&nbsp;



The FTX representative added that the company’s partnership strategy has always been about finding partners who shared its long-term belief in the digital asset space.&nbsp;



“That was a cycle-neutral strategy,” the spokesperson said. “We’re excited to continue to collaborate with those partners to help people learn about and explore crypto and make their own decisions about getting involved.”



Coinbase and Crypto.com, which also ran Super Bowl ads, declined to comment for this story.&nbsp;



The latter company spent much of 2021 <a href="https://cms.blockworks.co/crypto-com-cmo-on-how-company-went-from-app-to-global-brand/" target="_blank" rel="noreferrer noopener">boosting brand awareness</a> through large partnerships, capping off the year by buying the naming rights to the Staples Center in Los Angeles last month as part of a 20-year, $700 million deal. Crypto.com more recently <a href="https://cms.blockworks.co/crypto-com-adds-fifa-world-cup-sponsorship-to-sports-marketing-strategy/" target="_blank" rel="noreferrer noopener">became a sponsor</a> for the 2022 FIFA <a href="https://www.fifa.com/" target="_blank" rel="noreferrer noopener">World Cup</a>, which is set to take place in Qatar in November and December.



Coinbase executives said during an earnings call in May that it expected sales and marketing expenses to represent about 15% to 20% of its net revenue. CEO Brian Armstrong noted that the company would “dial up marketing” as its products mature, noting that Coinbase would focus on its existing user base.&nbsp;



<a href="https://cms.blockworks.co/crypto-com-cutting-5-of-workforce-amid-digital-asset-downturn/" target="_blank" rel="noreferrer noopener">Crypto.com</a>, <a href="https://cms.blockworks.co/coinbase-cut-workforce-ceo-wary-of-potential-recession/" target="_blank" rel="noreferrer noopener">Coinbase</a> and other digital asset companies have revealed plans to cut their workforces in recent weeks as a cost-saving measure.



Contrarily, OKX revealed last month that it plans to increase headcount by 30%, growing by 1,500 people to about 5,000 over the next 12 months.



“We have a lot of work to do towards becoming the world&#8217;s most loved crypto trading app,” Rafique said. “This requires us to have the best talent, shape the user experience and offer the ultimate utilities on our platform for all types of investors and traders.”



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How Are Crypto Companies Adjusting Marketing Amid the Downturn?

Casey Wagner

<div id="highlights-block_6259da4816b6d" class="highlights">
 <ul>
 <li>WonderFi announces plans to purchase second crypto exchange in Canada, which will give it a 33% market share </li>
 <li>The teams expect the regulatory approval process to move quickly after its last acquisition set a precedent</li>
 </ul>
 
</div>



A month after closing its last deal, Canada-based decentralized finance company WonderFi Technologies has announced plans to purchase Coinberry, another regulated cryptocurrency exchange. 



WonderFi has entered a definitive agreement to purchase <a href="https://www.coinberry.com/" target="_blank" rel="noreferrer noopener">Coinberry</a> for $25.54 million. The exchange, founded in 2017, currently services over 220,000 Canadian clients and has posted over $1 billion in transactions to date.&nbsp;



“We have a shared belief with WonderFi that seamless integration and unified access to digital assets is the future and where we want to be positioned,” said Coinberry CEO and Founder, Andrei Poliakov.



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">“We chose this route for Coinberry because we felt it was the best thing for our loyal Canadian users and this merger will give users access to the best prices, the best products, and the best service.”   </blockquote>



In March, WonderFi <a href="https://cms.blockworks.co/wonderfi-announces-closing-of-bitbuy-acquisition-overcoming-regulatory-hurdles/" target="_blank" rel="noreferrer noopener">closed its acquisition</a> of First Ledger Corp, the parent company of Bitbuy Technologies, after first announcing plans to purchase the exchange in January. Regulatory hurdles were behind the delay, as it marked the first time in Canadian history that every provincial regulator had to approve a change of control where a publicly traded company, WonderFi, was acquiring an approved crypto entity, said Ben Samaroo, CEO of WonderFi.&nbsp;



The Coinberry purchase is subject to the same regulatory approval process, but the teams expect this process to move faster this time.&nbsp;



“WonderFi set a precedent with the acquisition of Bitbuy as it was the first acquisition of a licensed crypto platform in Canada,”  said Samaroo.



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">“As we have now carved the path for this type of acquisition, we expect that the Coinberry deal will achieve regulatory approval on a shorter timeline.” </blockquote>



Once the deal is finalized, WonderFi will own two out of the six registered cryptocurrency trading platforms in Canada, putting it at a 33% market share.&nbsp;



“WonderFi’s management team continues to execute on accretive acquisitions, and this is an extremely important one, because it shows the speed and vision behind WonderFi’s plan,” said Kevin O’Leary, an entrepreneur and WonderFi advisor and investor. “Compliant access to crypto is what matters, and WonderFi has quickly established itself as a leader in Canada. Next stop, global.”



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WonderFi Continues to Consolidate Canadian Market With Second Acquisition￼

<div id="highlights-block_623dbf2e1a8ef" class="highlights">
 <ul>
 <li>Months after the deal was introduced, WonderFi has announced the close of its acquisition of Bitbuy, the only regulated cryptocurrency exchange in Canada</li>
 <li>The process resulted in WonderFi’s product offerings being allowed to be made available in select Canadian provinces</li>
 </ul>
 
</div>



Canada-based decentralized finance company WonderFi Technologies has closed its acquisition of First Ledger Corp, the parent company of Bitbuy Technologies, after a long regulatory battle.&nbsp;



WonderFi, which trades on the Neo Exchange in Canada, has agreed to pay $161.8 million in USD in cash and shares.&nbsp;



The deal was <a href="https://cms.blockworks.co/kevin-oleary-backed-wonderfi-acquires-bitbuy/" target="_blank" rel="noreferrer noopener">first announced</a> in January 2022. It’s the first time in Canadian history that every provincial regulator had to approve a change of control where a publicly traded company, WonderFi, was acquiring an approved crypto entity, said Ben Samaroo, CEO of WonderFi. 



There were three main regulatory considerations in relation to the acquisition, Samaroo said.&nbsp;



“One, a change of control occurrence of a newly approved marketplace and restricted dealer, two, a publicly traded company acquiring a company holding these approvals and three, the acquirer, WonderFi, engaged in DeFi, a high-growth emerging industry,” he said. 



WonderFi was interested in the acquisition of Bitbuy because it provides an opportunity to combine a centralized exchange, Bitbuy, with WonderFi’s DeFi products.&nbsp;



“This is a very important transaction for WonderFi’s future,” said Kevin O’Leary, an entrepreneur and WonderFi advisor and investor, when the deal was first announced.



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">“When you think about customer acquisition, you want to make sure that you provide every opportunity to service that customer…you want to offer every service they want.” </blockquote>



Collectively, the two companies have raised over $100 million dollars over the past 12 months, making the combined entity the largest capital raised for any single crypto platform in Canada, according to WonderFi.&nbsp;



WonderFi’s DeFi products are not currently available throughout Canada, but Samaroo is hopeful that this regulatory process will open the door for greater compliance.&nbsp;



“As a result of this acquisition, the regulatory bodies in Canada prudently chose to take the opportunity to delve into the WonderFi product offerings,” he said. “The result of the regulatory exercise led to select provinces choosing to allow WonderFi’s products to be made available, while some of the other provinces elected to further review and develop their views on the new high-growth emerging industry.”



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WonderFi Announces Closing of Bitbuy Acquisition, Overcoming Regulatory Hurdles

<div id="highlights-block_620683f5adedf" class="highlights">
 <ul>
 <li>Bitbuy spent roughly a quarter of its 2022 marketing budget on its Super Bowl ad starring Miami Heat point guard Kyle Lowry</li>
 <li>FTX will give away bitcoin as part of its ad campaign</li>
 </ul>
 
</div>



Crypto companies FTX, Bitbuy, Coinbase and Crypto.com are set to run Super Bowl ads on Sunday, marking the first time that companies in the industry will advertise during the game.



Though some advertisers paid as much as $7 million for a 30-second spot, NBC revealed last week, executives at FTX and Bitbuy said the cost is worth it for their companies.&nbsp;



“In the US, there is no other event each year where consumers actively look forward to being advertised to,” FTX marketing executive Nathaniel Whittemore told Blockworks.



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">“Watching and picking out your favorite Super Bowl ads is a part of the tradition of the big game, and that&#8217;s a pretty unique opportunity to be a part of.”</blockquote>



More than 30 advertisers in this year’s Super Bowl — about 40% of the total group — didn’t run an ad last year, according to NBC. Most of the new advertisers fall into the automotive, technology and travel categories.



FTX <a href="https://cms.blockworks.co/ftx-to-give-away-bitcoin-as-part-of-super-bowl-ad-campaign/" target="_blank" rel="noreferrer noopener">revealed on Monday</a> that it would be giving away bitcoin as part of a contest running in conjunction with the ad. Though an FTX spokesperson declined to share details about the commercial, star power can be expected.



The crypto exchange <a href="https://www.youtube.com/watch?v=uymLJoKFlW8" target="_blank" rel="noreferrer noopener">has run ads</a> featuring seven-time Super Bowl champion Tom Brady and his wife Gisele Bündchen.



<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"><div class="wp-block-embed__wrapper">
<iframe loading="lazy" title="FTX Crypto: Tom Brady is In. Are you?" width="1024" height="576" src="https://www.youtube.com/embed/uymLJoKFlW8?start=1&#038;feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe>
</div></figure>



The company also tapped other star athletes last year, such as <a href="https://cms.blockworks.co/ftx-names-stephen-curry-a-global-ambassador/" target="_blank" rel="noreferrer noopener">Stephen Curry</a> and <a href="https://cms.blockworks.co/ftx-inks-deal-with-mlb-star-shohei-ohtani/" target="_blank" rel="noreferrer noopener">Shohei Ohtani</a>, to be brand ambassadors.



“This game comes as something of a capstone on a year during which there has been a massive increase in consumer awareness of the crypto industry,” Whittemore explained. “Between people investing in their first cryptos or exploring NFTs, more Americans than ever are part of the digital asset ecosystem, so we thought it was a great time to bring crypto to the big game.”



The expensive Super Bowl ad buy will not prevent FTX from doing more marketing campaigns in 2022, Whittemore added.



Eric Chen, CEO and co-founder of Injective Labs, argued that the Super Bowl will be the first time that the entire crypto industry is under a major spotlight.



“While the broad crypto market is calming down after major movements in 2021, FTX is trying to increase the platform adoption through advertising,” Chen said. “We can’t predict the exact tradeoff of this investment, but we certainly know that this is very helpful for their PR coverage and global brand awareness.”



<h3 class="wp-block-heading">Canadian crypto exchange looks to reach new audience</h3>



Canada-based crypto platform Bitbuy has recently changed its marketing strategy to target more members of Gen X and baby boomers, according to Binu Koshy, Bitbuy’s marketing and communications director.



Its <a href="https://www.youtube.com/watch?v=aI3LNq_lres" target="_blank" rel="noreferrer noopener">Super Bowl ad</a>, which features Miami Heat point guard Kyle Lowry, will air in Canada. Lowry is well known in the country for playing nine years with the Toronto Raptors and winning an NBA title with the team in 2019.



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" decoding="async" width="1024" height="576" src="https://blockworks-co.imgix.net/wp-content/uploads/2022/02/My-project-4-1024x576.jpg" alt="" class="wp-image-17287" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2022/02/My-project-4-1024x576.jpg?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2022/02/My-project-4-1024x576.jpg?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2022/02/My-project-4-1024x576.jpg?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2022/02/My-project-4-1024x576.jpg?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2022/02/My-project-4-1024x576.jpg?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2022/02/My-project-4-1024x576.jpg?w=464 464w, https://blockworks-co.imgix.net/wp-content/uploads/2022/02/My-project-4-1024x576.jpg?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2022/02/My-project-4-1024x576.jpg?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2022/02/My-project-4-1024x576.jpg?w=50 50w, https://blockworks-co.imgix.net/wp-content/uploads/2022/02/My-project-4-1024x576.jpg?w=1600 1600w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption>Kyle Lowry on the set of Bitbuy&#8217;s Super Bowl commercial | Source: Bitbuy</figcaption></figure></div>



Until about six months ago, Bitbuy primarily advertised through digital channels, where the majority of its users consume media.&nbsp;



“We reached the point where growing our customer base means attracting new consumer segments,” Koshy said. “It’s not sustainable to keep speaking to the same early adopters over and over again who have already jumped into crypto.”&nbsp;



Bitbuy applied to become a registered crypto exchange, a prerequisite to be able to run the Super Bowl commercial. It gained the distinction on Nov. 30 and signed Lowry two days later.&nbsp;



Though the ad was less expensive than the $7 million price tag in the US, Koshy said, roughly 25% of the company’s marketing budget for 2022 went to signing Lowry, as well as producing and buying the ad.



“That is a big percentage, but we feel there is no other media event in the calendar when you can reach so many people at one time,” Koshy explained.



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">“Studies show there is a direct correlation between sports enthusiasts and crypto investors, and we are using the Super Bowl as a launching pad for our Kyle Lowry commercial to reach sports fans of all the major sports leagues.”</blockquote>



Between 60% to 70% of Bitbuy’s marketing spend this year will be on ads during live sports, he added.



<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"><div class="wp-block-embed__wrapper">
<iframe loading="lazy" title="Kyle Lowry “Again and Again”| Bitbuy 2022 Super Bowl Commercial" width="1024" height="576" src="https://www.youtube.com/embed/aI3LNq_lres?start=1&#038;feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe>
</div></figure>



Crypto.com and Coinbase are also reportedly set to run ads during the NFL championship game. Spokespeople for both companies declined to share specifics about the commercials.



The upcoming Super Bowl ad for Crypto.com comes after a year of <a href="https://cms.blockworks.co/crypto-com-cmo-on-how-company-went-from-app-to-global-brand/" target="_blank" rel="noreferrer noopener">heavy marketing efforts</a> that included buying the naming rights to what was formerly the Staples Center in Los Angeles and creating a <a href="https://www.youtube.com/watch?v=9hBC5TVdYT8" target="_blank" rel="noreferrer noopener">television spot</a> starring actor Matt Damon.



The company also <a href="https://cms.blockworks.co/lebron-james-partners-with-crypto-com-to-help-kids-learn-about-digital-future/" target="_blank" rel="noreferrer noopener">partnered with LeBron James</a> last month, and <a href="https://twitter.com/KingJames/status/1492547824289935361" target="_blank" rel="noreferrer noopener">a video posted on Twitter Saturday</a> seems to indicate the four-time NBA champion will appear in the company&#8217;s Super Bowl ad.



Crypto exchange Coinbase went public last year and touts more than 70 million users.



<h3 class="wp-block-heading">Alternative campaigns</h3>



Binance is countering the ads running during the Super Bowl with a marketing campaign urging people to “learn crypto and trust yourself.”



The crypto exchange’s campaign, which will not include an ad during the game, features singer J Balvin, <a href="https://cms.blockworks.co/binance-hires-nba-star-to-warn-against-celebrity-ads/" target="_blank" rel="noreferrer noopener">NBA All-Star Jimmy Butler</a> and mixed martial arts fighter Valentina Shevchenko.



During the Super Bowl, Binance is encouraging viewers to visit CryptoCelebAlert.com when crypto commercials with celebrities air to claim one of 2,222 NFTs (non-fungible tokens) featuring Butler. The site will also include a crypto primer to understand basics about the technology.



“Our focus is on being user-first and empowering through education,” a Binance spokesperson told Blockworks. “We appreciate that our competitors are spending to show up in primetime and drive crypto awareness, however our counter-programming approach was developed to draw attention to the gap between awareness and adoption.”



Vancouver-based Dapper Labs also launched NFTs featuring visuals of the conference championship trophies won by the Cincinnati Bengals and Los Angeles Rams.&nbsp;



Additional NFTs with the Super Bowl and winning team logos, as well as the date and score of the game, will become available next week.



“I hope that with this newfound attention, crypto brands think deeply about how they can best educate the public about why this technology matters and how it can positively influence people&#8217;s lives,” said Keli Callaghan, Algorand’s head of marketing.



This story was edited on Feb. 13, at 10 a.m. ET. 



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Crypto Exchanges Compete to Grab Super Bowl Spotlight

<div id="highlights-block_61d4d731d3534" class="highlights">
 <ul>
 <li>DeFi platform WonderFi is moving into the exchange space with the purchase</li>
 <li>Bitbuy is looking to expand DeFi offerings through WonderFi’s application </li>
 </ul>
 
</div>



Decentralized finance company WonderFi Technologies has acquired Canadian cryptocurrency exchange Bitbuy in a deal of $161.8 million in cash and shares, the companies announced Tuesday.&nbsp;



Bitbuy, which became Canada’s first approved cryptocurrency marketplace in November 2021 has added more than 375,000 users and transacted more than $4.4 billion since its launch in 2016.&nbsp;



“This is a very important transaction for WonderFi’s future,” said Kevin O’Leary, an entrepreneur and WonderFi advisor and investor. “When you think about customer acquisition, you want to make sure that you provide every opportunity to service that customer… you want to offer every service they want.”&nbsp;



WonderFi will now own and operate the Bitbuy cryptocurrency marketplace and over-the-top business, which services both retail and institutional clients. The acquisition will help the cryptocurrency exchange expand more into DeFi offerings, which Bitbuy president Dean Skurka said is the future of the industry.&nbsp;



“We want to always be where the puck is going and DeFi is certainly representative of the future of finance and the future of crypto,” Skurka said.&nbsp;



Bitbuy will merge with the WonderFi retail app, providing greater opportunities for client trading and transactions, Skurka said.&nbsp;



The WonderFi and Bitbuy teams look forward to expanding offerings to both retail and institutional clients, but O’Leary said 2022 will be a significant year for <a href="https://cms.blockworks.co/kevin-oleary-bitcoin-etf-wont-be-approved-until-at-least-2023/" target="_blank" rel="noreferrer noopener">institutional adoption</a> in particular. 



“I spend the majority of my day speaking with institutions,” he said. “One of the great opportunities here is that many of them have not yet got clearance to buy crypto assets for a wide range of reasons, some of it has to do with ESG issues, some of it has to do with compliance and regulation.”&nbsp;



Bitbuy is a broad platform that will allow institutional investors to purchase crypto-related equities, opening the door for institutions to gain exposure to the asset class.&nbsp;



“We&#8217;ve been a retail-focused app primarily over the last four years, in terms of products,” Skurka said. “On the back of this marketplace license and now with this acquisition, we&#8217;ve been focusing more on institutional clientele.”&nbsp;



The acquisition is expected to close during the first quarter of 2022. Skurka will be appointed to the board upon closing. O’Leary joined the WonderFi team in June 2021 as a strategic investor following the close of a financing round. 



<hr class="wp-block-separator"/>



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