Shalini Nagarajan

The UK&#8217;s culture, media and sports (CMS) committee is advising the government to collaborate with NFT marketplaces to address copyright violations.



Comprising a group of MPs, the committee initiated an inquiry in Nov. 2022 to explore the impact of blockchain and NFTs on policy areas within their jurisdiction.



In a report <a href="https://committees.parliament.uk/publications/41611/documents/205745/default/">released</a> Wednesday, they pinpointed intellectual property risks as their primary concern during the investigation.



NFTs featuring art can infringe on artists’ intellectual property rights and are found on online platforms with limited ways to resolve and compensate for such issues, they said.



“Artists are at risk of seeing the fruits of their hard work pinched and promoted without permission while fraudulent and misleading adverts add an extra layer of jeopardy for investors involved in what is already an inherently risky business,” Caroline Dinenage, Conservative MP and Chair of the CMS Committee, said in a statement.&nbsp;



“The government must make sure that everyone in the crypto chain is working to properly protect consumers and the rights of creators,” she added.



The committee noted that an opportunistic user might, for instance, use inaccurate information, like misattributing the creator of an artwork, potentially impacting the creator&#8217;s future ability to profit from the artwork.



To tackle this issue, they recommended establishing rules for online marketplaces, including NFT platforms, to safeguard creators, buyers and sellers from fake or illegal content.



The group is also worried that NFTs are being used in professional sports to generate extra income from global fans and, in some cases, as a substitute for fan interaction.



Fan tokens are created to boost fan interaction with sports teams or organizations. When fans buy these tokens, they gain access to various perks, rewards and chances to connect with their favorite teams or clubs in return.



In the context of sports, the report suggested that employing fan tokens in football should not be considered a valid gauge of engagement, due to price instability and concerns raised by fan groups.



“The unique relationship between clubs and fans means that fan speculation on sport-based cryptoassets carries a real risk of financial harm to fans and reputational harm to clubs,” the report said.



The committee also urged the government to tackle deceptive or dishonest NFT advertising.&nbsp;



They recommended a regulatory framework that mandates the entire advertising process to minimize potential harm to consumers arising from NFT marketing.



<a href="https://blockworks.co/news/uk-fca-deadline-crypto-marketing-regulation">Recent UK regulations</a> mandate that crypto companies must ensure their advertising is transparent, equitable and prominently displays risk notifications.



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UK sports committee wants football to tackle fan tokens, NFTs

Ben Strack

<div id="highlights-block_632c70030301f" class="highlights">
 <ul>
 <li>Deal with Patriots owner Robert Kraft-founded company to lead to “cutting-edge” experiences around Gillette Stadium</li>
 <li>Blockchain.com’s partnership with the Dallas Cowboys in April was the first deal between a crypto exchange and an NFL team</li>
 </ul>
 
</div>



Web3 software solutions company Chain has partnered with Kraft Sports and Entertainment to become the official blockchain sponsor of the NFL’s New England Patriots.



The deal also makes <a href="https://chain.com/" target="_blank" rel="noreferrer noopener">Chain</a> a sponsor for MLS’ New England Revolution, as well as Gillette Stadium, where the Patriots and Revolution play. 



“Our team is excited to help Kraft Sports and Entertainment build cutting-edge experiences for stadium visitors utilizing Chain’s proprietary blockchain technology,” Chain CEO Deepak Thapliyal said in a statement.&nbsp;



Terms of the deals were not disclosed. A Chain spokesperson did not immediately return a request for comment.&nbsp;



Billionaire Robert Kraft acquired the Patriots in 1994. Since then, the team has won six Super Bowls, all with Tom Brady as quarterback. Brady, who now plays for the Tampa Bay Buccaneers, is a brand ambassador for crypto exchange FTX.



Kraft founded the Revolution in 1996 and created <a href="https://www.thekraftgroup.com/the-kraft-group-2-2/" target="_blank" rel="noreferrer noopener">The Kraft Group</a> in 1998. Gillette Stadium opened in 2002.



Murray Kohl, vice president of sales for Kraft Sports and Entertainment, said in a statement that the Patriots and Revolution have sought to utilize tech to engage with fans over the years through early website development, a nightly internet show and a long-running podcast.&nbsp;



“Together with Chain, we’ll look to innovate that same way with Web3,” Kohl said.



<blockquote class="wp-block-quote">“Our fans will be able to connect with the Patriots and Revolution in ways never before possible,” he said.</blockquote>



Crypto companies teaming up with professional sports teams, leagues and athletes to build brand awareness became more common during the last bull cycle and continues amid the so-called crypto winter.&nbsp;



Perhaps most notably, <a href="https://cms.blockworks.co/crypto-com-cmo-on-how-company-went-from-app-to-global-brand/" target="_blank" rel="noreferrer noopener">Crypto.com inked a 20-year, $700 million deal</a> last year to rename the Staples Center — the home of the NBA’s Lakers and Clippers, the NHL’s Kings and the WNBA’s Sparks — as Crypto.com Arena.



<a href="https://cms.blockworks.co/in-first-crypto-partnership-with-nfl-blockchain-com-teams-up-with-dallas-cowboys/" target="_blank" rel="noreferrer noopener">Blockchain.com partnered with the Dallas Cowboys</a> in April — the first such deal between a crypto exchange and an NFL team. 



Terra agreed in February to pay roughly $40 million to MLB’s Washington Nationals <a href="https://cms.blockworks.co/washington-nationals-latest-pro-sports-team-to-strike-crypto-deal/" target="_blank" rel="noreferrer noopener">as part of a five-year deal</a> to sponsor its luxury club behind home plate and run a digital series on the team’s social media platforms.



<a href="https://cms.blockworks.co/unparalleled-luxury-nationals-still-pitching-exclusive-terra-club%EF%BF%BC%EF%BF%BC%EF%BF%BC/" target="_blank" rel="noreferrer noopener">The Terra Club at Nationals Park has kept its name</a> despite the crash of Terra’s algorithmic stablecoin TerraUSD (UST) and LUNA token several months ago.



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Chain Strikes Sponsorship Deal With New England Patriots

<div id="highlights-block_6271415f2ce7c" class="highlights">
 <ul>
 <li>Price of Algorand (ALGO), which is down 50% from a year ago, gets boost after sponsorship news</li>
 <li>Partnership reflects FIFA’s commitment to “seeking innovative channels for sustainable revenue growth,” FIFA president says</li>
 </ul>
 
</div>



The price of Algorand’s native currency ALGO spiked after the blockchain revealed it would be a sponsor of FIFA and help the organization develop its digital assets strategy. 



ALGO’s price was $0.68 at 10:30 am ET, up about 15% from 24 hours ago, according to data compiled by Blockworks. The price, which was more than $2 as recently as November, is down 50% from a year ago and down 24% month over month.



The current market capitalization of ALGO is roughly $4.6 billion, making it the 31st largest coin, ahead of Stellar’s XLM.



Algorand will become the official blockchain platform of FIFA and provide an official blockchain-supported wallet solution, the company said in a Monday statement. It will be a FIFA World Cup Qatar 2022 regional supporter in North America and Europe and a FIFA Women’s World Cup Australia and New Zealand 2023 official sponsor.



FIFA will offer advertising, media exposure and promotional opportunities to Algorand, while the blockchain will assist FIFA in exploring ways to delve deeper into digital assets.



A spokesperson did not immediately comment on other specifics of the deal.



The agreement comes after Algorand Foundation CEO Staci Warden <a href="https://cms.blockworks.co/former-jpmorgan-exec-named-algorand-foundation-ceo/" target="_blank" rel="noreferrer noopener">told Blockworks in February</a> the blockchain was seeking to bolster its marketing efforts by quadrupling the size of its community engagement team and expanding its developer relations unit.  



“This partnership with FIFA, the most globally recognized and distinguished organization in sports, will showcase the potential that the Algorand blockchain has to transform the way we all experience the world’s game,” Algorand Founder Silvio Micali said in a statement.



Switzerland-based FIFA, short for Fédération Internationale de Football Association, was founded in 1904 and is the international governing body of association football. The organization hit a high of roughly $4.6 billion in revenue in 2018, <a href="https://www.statista.com/statistics/268873/revenue-of-the-football-association-fifa/" target="_blank" rel="noreferrer noopener">according to Statista</a>, due in part to its television broadcasting rights.



“The collaboration is a clear indication of FIFA’s commitment to continually seeking innovative channels for sustainable revenue growth for further reinvestment back into football ensuring transparency to our stakeholders and world-wide football fans — a key element of our vision to make football truly global,” FIFA President Gianni Infantino said in a statement.



Algorand will not be the only crypto company with brand exposure at the World Cup later this year. Crypto.com <a href="https://cms.blockworks.co/crypto-com-adds-fifa-world-cup-sponsorship-to-sports-marketing-strategy/" target="_blank" rel="noreferrer noopener">announced in March</a> that it would be the exclusive cryptocurrency trading platform sponsor for the soccer event, which is set to take place in November and December.



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Algorand Price Up 15% After Deal With FIFA

<div id="highlights-block_623a29cff3ea8" class="highlights">
 <ul>
 <li>Crypto.com had already made deals with the Australian Football League and Formula One this year</li>
 <li>Competitor FTX landed a partnership with tennis player Naomi Osaka on Monday</li>
 </ul>
 
</div>



Crypto.com will be a sponsor 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.



As the exclusive cryptocurrency trading platform sponsor for the soccer event, the company’s brand will be on display inside and outside the tournament’s stadiums. Crypto.com will also offer opportunities for new and existing users to attend matches or win exclusive merchandise.



“There is no platform bigger, or with a greater reach and cultural impact, than FIFA’s global platform of football,” FIFA Chief Commercial Officer Kay Madati said in a statement. “We are delighted to have a global brand like Crypto.com join us as a sponsor of the exciting and groundbreaking FIFA World Cup in Qatar, ultimately helping to grow our beautiful game on a global scale.”



The company has made sports sponsorship deals a <a href="https://cms.blockworks.co/crypto-com-cmo-on-how-company-went-from-app-to-global-brand/" target="_blank" rel="noreferrer noopener">core component</a> of its brand-building campaign. It bought the naming rights to the Staples Center in Los Angeles last November as part of a 20-year, $700 million deal and aired a commercial starring actor Matt Damon.



In January this year it <a href="https://cms.blockworks.co/crypto-com-australian-football-league-sign-18m-sponsorship-deal-in-country-first/" target="_blank" rel="noreferrer noopener">signed a five-year sponsorship deal</a> with the Australian Football League and last month announced it would sponsor what will be known as the Formula One Crypto.com Miami Grand Prix in May.



The company was also among several industry heavyweights, including FTX and Coinbase, to run an advertisement <a href="https://cms.blockworks.co/super-bowl-ads-spark-public-interest-coinbase-site-crashes-from-traffic/" target="_blank" rel="noreferrer noopener">during the Super Bowl</a> on Feb. 13. The 30-second commercial featured LeBron James and followed Crypto.com’s <a href="https://cms.blockworks.co/lebron-james-partners-with-crypto-com-to-help-kids-learn-about-digital-future/" target="_blank" rel="noreferrer noopener">partnership with the four-time NBA champion</a> to teach kids about crypto technology.



Other crypto firms have kept pace on the sports marketing front. Terra, for example, <a href="https://cms.blockworks.co/washington-nationals-latest-pro-sports-team-to-strike-crypto-deal/" target="_blank" rel="noreferrer noopener">partnered with the Washington Nationals</a> last month. The baseball team said that stablecoin TerraUSD (UST) could be accepted as a payment method at Nationals Park next season.



Most recently, FTX landed a deal with tennis player Naomi Osaka on Monday. Joining athletes Tom Brady, Stephen Curry and others as a brand ambassador for the crypto company, the four-time Grand Slam winner will produce content and projects to reach young women in crypto.



Founded in 2016,&nbsp;Crypto.com has more than 10 million customers and roughly 4,000 employees across its offices in the Americas, Europe and Asia.



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Crypto.com Adds FIFA World Cup Sponsorship to Sports Marketing Strategy

<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">“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">“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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