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.”



<hr class="wp-block-separator">
Get the day’s top crypto news and insights delivered to your email every evening.&nbsp;<a href="https://cms.blockworks.co/newsletter/?source=end" target="_blank" rel="noreferrer noopener">Subscribe to Blockworks’ free newsletter</a>&nbsp;now.
 
Want alpha sent directly to your inbox? Get degen trade ideas, governance updates, token performance, can’t-miss tweets and more from&nbsp;<a href="https://blockworks.co/newsletter/research" target="_blank" rel="noreferrer noopener">Blockworks Research&#8217;s Daily Debrief</a>.
 
Can&#8217;t wait? Get our news the fastest way possible.&nbsp;<a href="https://t.me/blockworks_news" target="_blank" rel="noreferrer noopener">Join us on Telegram</a> and follow us on <a href="https://news.google.com/publications/CAAqBwgKMPyTxgswn6_dAw" target="_blank" rel="noreferrer noopener">Google News</a>.
<hr class="wp-block-separator">

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.



<hr class="wp-block-separator">
Get the day’s top crypto news and insights delivered to your email every evening.&nbsp;<a href="https://cms.blockworks.co/newsletter/?source=end" target="_blank" rel="noreferrer noopener">Subscribe to Blockworks’ free newsletter</a>&nbsp;now.
 
Want alpha sent directly to your inbox? Get degen trade ideas, governance updates, token performance, can’t-miss tweets and more from&nbsp;<a href="https://blockworks.co/newsletter/research" target="_blank" rel="noreferrer noopener">Blockworks Research&#8217;s Daily Debrief</a>.
 
Can&#8217;t wait? Get our news the fastest way possible.&nbsp;<a href="https://t.me/blockworks_news" target="_blank" rel="noreferrer noopener">Join us on Telegram</a> and follow us on <a href="https://news.google.com/publications/CAAqBwgKMPyTxgswn6_dAw" target="_blank" rel="noreferrer noopener">Google News</a>.
<hr class="wp-block-separator">

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>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 decoding="async" loading="lazy" 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.



<hr class="wp-block-separator">
Get the day’s top crypto news and insights delivered to your email every evening.&nbsp;<a href="https://cms.blockworks.co/newsletter/?source=end" target="_blank" rel="noreferrer noopener">Subscribe to Blockworks’ free newsletter</a>&nbsp;now.
 
Want alpha sent directly to your inbox? Get degen trade ideas, governance updates, token performance, can’t-miss tweets and more from&nbsp;<a href="https://blockworks.co/newsletter/research" target="_blank" rel="noreferrer noopener">Blockworks Research&#8217;s Daily Debrief</a>.
 
Can&#8217;t wait? Get our news the fastest way possible.&nbsp;<a href="https://t.me/blockworks_news" target="_blank" rel="noreferrer noopener">Join us on Telegram</a> and follow us on <a href="https://news.google.com/publications/CAAqBwgKMPyTxgswn6_dAw" target="_blank" rel="noreferrer noopener">Google News</a>.
<hr class="wp-block-separator">

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

Partnerships between sports brands and crypto companies — a dime a dozen through the bull market — are likely to slow and shift after a whirlwind 2022, according to industry participants.



The FTX moniker was <a href="https://blockworks.co/news/golden-state-warriors-and-miami-heat-axe-ftx-deals">stripped</a> from the Miami Heat’s arena last month. The MLB cut ties with the collapsed crypto exchange. And Voyager Digital’s <a href="https://blockworks.co/news/voyager-digital-partners-with-dallas-mavericks">deal</a> with the NBA’s Dallas Mavericks ran into a wrinkle: the crypto company’s bankruptcy.&nbsp;



Though a handful of the industry’s firms are still interested in doing deals, despite dropping marketing budgets, the structures and terms of the arrangements appear poised to morph. Backs are now on the lookout for more crypto crashes to potentially pop up.



<h3>Sponsorships drop off in 2022’s second half&nbsp;</h3>



Circa 2021, crypto brands began outbidding prominent existing sponsors beset by the pandemic’s economic fallout, according to Conrad Wiacek, head of sport analysis and consulting at GlobalData.&nbsp;



Wiacek pointed to FTX <a href="https://blockworks.co/news/ftx-inks-135m-sponsorship-deal-for-miami-heat-arena">inking</a> a 19-year, $135 million deal in March 2021 for naming rights to the Miami Heat’s arena, previously the domain of American Airlines.&nbsp;



“Where traditional sponsors might have kept the sponsorship going if they could keep a flat rate, crypto companies were throwing money around, basically,” he told Blockworks.



Crypto collectively shelled out cash for those deals during the first half of 2022 — good for an estimated $515 million, according to GlobalData. The sports industry wasn’t far behind at $444 million, while alcohol brands and insurers spent about $280 million and $235 million, respectively.&nbsp;&nbsp;



But crypto clocked in at sixth place by the end of 2022. Its companies cumulatively spent a scant $3 million on deals during the second half as crypto winter intensified, a rough six months worsened still by the crash of FTX in November.



Crypto.com was the fifth-highest roller through June, standing at nearly $79 million — trailing AB In-Bev, Nike, Vivo and Qatar Airways.&nbsp;



That total remained about flat the rest of the year, as Crypto.com fell from fifth to 13th on the list of highest annual spenders, according to the December GlobalData report.



Crypto.com in 2021 <a href="https://blockworks.co/news/crypto-com-cmo-on-how-company-went-from-app-to-global-brand">bought the naming rights</a> to the Los Angeles Arena formerly known as the Staples Center as part of a 20-year, $700 million deal. Its splashy spends continued last year with a <a href="https://twitter.com/cryptocom/status/1493033811105378307?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1493033811105378307%7Ctwgr%5E05e18754e8ae689dad40ac095403766008a791f3%7Ctwcon%5Es1_&amp;ref_url=https%3A%2F%2Fblockworks.co%2Fnews%2Fcrypto-com-cmo-on-how-company-went-from-app-to-global-brand" target="_blank" rel="noreferrer noopener">Super Bowl ad</a> in February, as well as <a href="https://blockworks.co/crypto-com-australian-football-league-sign-18m-sponsorship-deal-in-country-first">a five-year deal</a> with the Australian Football League, plus an agreement to sponsor the <a href="https://blockworks.co/news/crypto-com-adds-fifa-world-cup-sponsorship-to-sports-marketing-strategy">2022 FIFA World Cup</a>.&nbsp;&nbsp;



It’s not clear whether the exchange plans to renew for the next World Cup. And some of its longer-term deals could be in jeopardy too, according to Wiacek.&nbsp;



“Something like the Crypto.com arena deal, unless there is a bounce-back in the industry, I would be surprised if that makes it to term,” he said.



A Crypto.com spokesperson declined to comment.&nbsp;



<h3>Who is still spending?</h3>



OKX Chief Marketing Officer Haider Rafique told Blockworks that sports sponsorships are a major part of the company’s go-to-market strategy — and there’s no plans to change that this year.



“These activities play a key role in raising brand awareness, creating opportunities to tell our broader company story and better service our customers,” Rafique said. “This is true in bull and bear markets alike.”



Still, OKX is in the digital assets minority now. Rafique is eyeing a likely dramatic slowdown in related and upcoming dealflow.&nbsp;



Liquidity for crypto companies is still an issue, according to the marketing officer, upping the ante for executives to earmark funds soundly.&nbsp;



Coinbase, Crypto.com and Blockchain.com were among the crypto firms <a href="https://blockworks.co/news/blockfi-exec-hired-at-kraken">putting in place additional layoffs</a> last week. 



“This can only be a good thing,” Rafique said of the deal slowdown. “It will ensure that the proper due diligence is being done across the board, and it will balance the valuations of these deals, which were heavily inflated due to the sheer overcrowding of the market.”&nbsp;



But partnerships are still being struck, according to Wiacek — despite shrinking durations and smaller check sizes.



Digital asset trading company Blockfills inked a deal toward the end of November 2022 — just 10 days after FTX filed for bankruptcy — with the Chicago Blackhawks for the upcoming NHL season. Wiacek pegged the arrangement as in the neighborhood of $700,000.



And South Korea-based crypto exchange Upbit partnered with Italian soccer club S. S. C. Napoli earlier this month as a sponsor for the next two seasons. The company’s logo is set to appear on the back of the team’s uniforms as a result. Exact terms of the deal were not disclosed.&nbsp;



Amber Group, on the other hand, plans to minimize its marketing spend in the coming months.&nbsp;



The company terminated its sponsorship of Chelsea FC as part of larger cuts that included layoffs, Bloomberg <a href="https://www.bloomberg.com/news/articles/2022-12-09/crypto-s-amber-to-end-chelsea-sponsorship-axe-over-40-of-jobs-in-ftx-fallout?leadSource=uverify%20wall" target="_blank" rel="noreferrer noopener">reported</a>. The partnership resulted in Amber’s WhaleFin trading platform being inked on Chelsea’s kits.&nbsp;



Though Amber Group had raised a <a href="https://blockworks.co/news/crypto-lender-amber-raises-300m-to-avoid-significant-drawdowns">$300 million venture round</a> around the same time, a spokesperson told Blockworks that tough market conditions have led to ensuing strategy tweaks.&nbsp;



“We have gone back to the drawing board to refocus on our core engines of growth — our institutional and high net worth clients,” the spokesperson said. “This also means we are making significant cuts to our marketing expenses as we deprioritize our consumer business lines.”



Meanwhile, a spokesperson for Coinbase told Blockworks the exchange has no plans to move away from previously announced — and signed — commitments.



Coinbase and the NBA, for example, worked out a multi-year partnership in October 2021 that made the exchange the exclusive crypto platform partner of the NBA, WNBA, NBA G League, NBA 2K League and USA Basketball.&nbsp;&nbsp;



“We will continue to support the players, teams and organizations we’ve partnered with while educating a new generation on the [crypto economy,]” the representative said.&nbsp;&nbsp;



<h3>How deals are likely to change</h3>



After FTX’s slate of sponsorships fell apart, prospective crypto sponsors may run into more complex questions when it comes to revenues and their vetted ability to adhere to regular and agreed upon payments, according to Joshua Kay, an associate at the law firm Wiggin.



They may also find some of the more premium long-term sponsorships — such as the naming rights of a stadium — are not available, he told Blockworks.&nbsp;



As for terms of the deal, Kay added, the sponsor may be required to pay all or most of the sponsorship fees up front rather than on a season-by-season basis. A specific exit plan for the deal may become a prerequisite, too.



Alex Harvey, an associate for the sports unit at law firm Sheridans, said reducing the lengths of agreements may well make sense now. 



Standard termination rights for a company entering insolvency or breaching laws would be appropriate, according to Harvey. Other contractual protections, such as broad warranties and indemnities, ought to be par for the course, in his view.&nbsp;



“Crucially, they should also include robust termination provisions which allow them to immediately terminate the deal in certain circumstances,” Harvey said. “For example, if the crypto brand does something which brings them into public disrepute.”



Harvey told Blockworks that while sports entities are likely to take a “risk-averse” approach to crypto for the time being, a significant shift over the long term doesn’t appear to be in the cards.&nbsp;



“The vast majority of sports rights holders currently partnering with crypto brands are entering into those deals fully aware of the reputational risks, but they are nevertheless prepared to absorb those risks given the eye-watering sums on offer,” he said. “Provided the financial incentives remain, there’s no reason to suspect that will change.”



<hr class="wp-block-separator">
Get the day’s top crypto news and insights delivered to your email every evening.&nbsp;<a href="https://cms.blockworks.co/newsletter/?source=end" target="_blank" rel="noreferrer noopener">Subscribe to Blockworks’ free newsletter</a>&nbsp;now.
 
Want alpha sent directly to your inbox? Get degen trade ideas, governance updates, token performance, can’t-miss tweets and more from&nbsp;<a href="https://blockworks.co/newsletter/research" target="_blank" rel="noreferrer noopener">Blockworks Research&#8217;s Daily Debrief</a>.
 
Can&#8217;t wait? Get our news the fastest way possible.&nbsp;<a href="https://t.me/blockworks_news" target="_blank" rel="noreferrer noopener">Join us on Telegram</a> and follow us on <a href="https://news.google.com/publications/CAAqBwgKMPyTxgswn6_dAw" target="_blank" rel="noreferrer noopener">Google News</a>.
<hr class="wp-block-separator">

Crypto Sports Deals Have Slowed — But They Aren’t Dead

Ornella Hernandez

The 2022 FIFA World Cup kicked off this weekend in Qatar. Millions of soccer fans are not only getting their fill of sports and competition this year, but they also can choose to interact with the various Web3 brands and companies that are hoping to achieve some goals of their own.&nbsp;



During the last FIFA World Cup in 2018 in Russia, the term Web3 was not a part of the global conversation. In 2022, however, athlete NFT drops and Bored Apes in Adidas commercials, for example, are accepted additions to the month-long tournament.



FIFA takes matches into the metaverse 



Starting with the international governing body of football itself, FIFA launched its own NFT marketplace deployed on the Algorand blockchain called FIFA+ Collect. Similar to the NBA Top Shots platform, users can collect video moments and highlights from previous World Cups.&nbsp;



Users can buy a pack of trading cards with three randomly selected highlights or single moments. The most expensive NFT in the marketplace at the time of writing is French player Kylian Mbappe&#8217;s goal against Argentina at the 2018 FIFA World Cup for $7,500.



Additionally, FIFA <a href="https://www.fifa.com/fifaplus/en/articles/fifa-unveils-range-of-new-web-3-0-games-ahead-of-fifa-world-cup-qatar-202" target="_blank" rel="noreferrer noopener">partnered</a> with blockchain-based companies — Uplandme, Matchday, Phygtl and Altered State Machine — to develop various soccer-themed Web3 games. 



One mobile game called AI League, created in partnership with the Altered State Machine protocol, will let fans who make it to the top of the leaderboard be eligible for digital and physical prizes such as Vivo phones, gaming equipment and Adidas gift cards.



The Upland metaverse, which maps virtual land to real world cities, has set up a digital replica of the FIFA World Cup Lusail stadium, village and shops. Users can trade NFTs of country crests, apparel and posters from all 32 World Cup teams to complete digital collection albums. World Cup village properties can only be won in tournament-specific Upland activities.



Additionally, the Argentinian player Lionel Messi-backed gaming startup Matchday collaborated with FIFA to create a betting app. Users who challenge friends to World Cup predictions can win by getting it right and collecting trading cards of footballers who perform the best during the tournament.



Lionel Messi’s second NFT drop



Messi teamed up with Web3 studio Ethernal Labs and its NFT marketplace Ethernity to develop his second NFT collection — the Messi Time Machine Collection.



Five new digital collectibles are meant to commemorate the Paris Saint-Germain forward’s career. The first NFT in the series highlights his first World Cup appearance in 2006. Holders of that token will have access to up to four additional collectibles commemorating previous World Cup appearances in 2010, 2014 and 2018. A raffle will grant 10 holders a chance to claim an NFT for this year’s tournament.



The football star first worked with Ethernity in 2021 on the “The Messiverse” collection, which grossed $3.6 million and is reported as the platform’s most successful collection to date.&nbsp;



<blockquote class="wp-block-quote">“Web3 is catapulting traditional sporting events like the World Cup into the future by offering fans, teams, brands and players a new avenue to connect and gather as a community,” Nick Rose Ntertsas, CEO and co-founder of Ethernal Labs, told Blockworks.</blockquote>



He added that the World Cup serves as a “bridge” between mainstream fans and the Web3 world: “Players and brands recognize they must cater to new technologies like digital collectibles and metaverse meet-ups to catch the attention of fans that grew up in a digital age.”



Additionally, Messi stars in a <a href="https://twitter.com/indigo_herz/status/1592082920168390657?s=20&amp;t=PAmK69VmDiqoWBJ2GUPspQ" target="_blank" rel="noreferrer noopener">World Cup commercial</a> with Adidas-owned Bored Ape Yacht Club (BAYC) NFT, Indigo Herz, on the front of a cereal box aptly named “INDIGOOOOOLS.” Adidas purchased BAYC #8774 Indigo Hertz last year for a total of 46 ETH ($156,000 at the time) as part of its Adidas Originals ecosystem. 



Cristiano Ronaldo enters NFT space



While Messi has been a blockchain proponent for the past couple of years, the 2022 World Cup marks the arrival of one of his rivals to the industry — Portuguese soccer player Cristiano Ronaldo. He is the most followed individual on Instagram, and crypto exchange Binance decided to take advantage of that fact.



Ronaldo <a href="https://twitter.com/Cristiano/status/1593529459306598401" target="_blank" rel="noreferrer noopener">launched</a> an NFT collection on Binance.com as part of an exclusive, multi-year partnership with the exchange. The 6,645 NFT CR7 collection features seven animated statues depicting an iconic moment in Ronaldo’s life. 



The digital collectibles have four levels of rarity, and depending on the NFT rarity, owners have access to different perks — ranging from a personal message from Ronaldo, autographed merchandise, access to future NFT drops and complimentary gift boxes.



Ronaldo said in a statement that he was “able to make something that not only captures the passion of the game but rewards fans for all the years of support.”



However, Binance.com’s NFT marketplace isn’t available to US users, so they are instead eligible to receive a souvenir NFT for thresholds of USD deposits made on the platform within the promotion period. Only then will users gain whitelist access to purchase future CR7 NFTs.&nbsp;&nbsp;



Recently celebrity-endorsed crypto advertisements have come under fire given <a href="https://blockworks.co/news/what-do-tom-brady-steph-curry-and-naomi-osaka-have-in-common-an-ftx-lawsuit" target="_blank" rel="noreferrer noopener">a class-action lawsuit against public figures</a> Tom Brady, Steph Curry, Larry David and others who were hired by now-bankrupt FTX. 



Earlier this year, Binance opted for a <a href="https://blockworks.co/news/binance-hires-nba-star-to-warn-against-celebrity-ads" target="_blank" rel="noreferrer noopener">social media campaign that ironically used celebrities</a> and athletes to warn crypto investors about listening to celebrities. 



Nevertheless, Binance is now out with a 60-second <a href="https://www.youtube.com/watch?v=rAozsyoe9DI" target="_blank" rel="noreferrer noopener">television commercial</a> featuring Ronaldo to promote the partnership and the NFT collection during the World Cup.



Budverse x World Cup 2022 NFTs   



American Beer maker Budweiser made a $75 million agreement with FIFA to be World Cup’s official beer sponsor. The deal was altered, however, when FIFA decided to <a href="https://www.espn.com/soccer/fifa-world-cup/story/4805520/fifaqatar-in-talks-over-whether-beer-will-be-sold-at-world-cup-stadiums-sources" target="_blank" rel="noreferrer noopener">ban the sale of alcohol</a> in its stadium two days before the first game. 



Budweiser has instead <a href="https://twitter.com/Budweiser/status/1593893410062143488?s=20&amp;t=QWehbFR_pER6ghB_JSTKtw" target="_blank" rel="noreferrer noopener">decided</a> to give away all the beer they were planning on selling to the country that wins the tournament.



In the meantime, they are selling live NFTs that update in real-time throughout the tournament. Live scoreboard NFTs present holders with an animated scoreboard, featuring their chosen nation, that tracks the team’s statistics.&nbsp;



Each mint of a Budverse NFT costs $100 and includes a physical merch pack, including a scarf, a color changing Budweiser aluminum cup and a trading card. Holders are also eligible to enter into a sweepstakes at purchase for a chance to win a VIP trip to the tournament.



<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">Keep track of your favorite team with a customized collectible that tracks their progress throughout the tournament. Claim exclusive Budweiser x FIFA World Cup™ merch, and get entered for a chance to win the <a href="https://twitter.com/hashtag/FIFAWorldCup?src=hash&amp;ref_src=twsrc%5Etfw">#FIFAWorldCup</a> VIP experience! <a href="https://t.co/1LBxJKeXjN">pic.twitter.com/1LBxJKeXjN</a>&mdash; Budweiser (@Budweiser) <a href="https://twitter.com/Budweiser/status/1580946123635953664?ref_src=twsrc%5Etfw">October 14, 2022</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



<hr class="wp-block-separator">
Get the day’s top crypto news and insights delivered to your email every evening.&nbsp;<a href="https://cms.blockworks.co/newsletter/?source=end" target="_blank" rel="noreferrer noopener">Subscribe to Blockworks’ free newsletter</a>&nbsp;now.
 
Want alpha sent directly to your inbox? Get degen trade ideas, governance updates, token performance, can’t-miss tweets and more from&nbsp;<a href="https://blockworks.co/newsletter/research" target="_blank" rel="noreferrer noopener">Blockworks Research&#8217;s Daily Debrief</a>.
 
Can&#8217;t wait? Get our news the fastest way possible.&nbsp;<a href="https://t.me/blockworks_news" target="_blank" rel="noreferrer noopener">Join us on Telegram</a> and follow us on <a href="https://news.google.com/publications/CAAqBwgKMPyTxgswn6_dAw" target="_blank" rel="noreferrer noopener">Google News</a>.
<hr class="wp-block-separator">

Messi and Ronaldo Lead World Cup NFT Bonanza

The Golden State Warriors, the San Francisco-based NBA team, is pausing all FTX-related promotional deals, ESPN reported.



All in-arena promotions and advertisements for the brand have been removed from the Chase Center following <a href="https://cms.blockworks.co/news/ftx-bankrupt-hacked-investigated-a-timeline-of-events/" target="_blank" rel="noreferrer noopener">FTX’s bankruptcy filings</a> on Friday, the sports network said.



Stephen Curry, a three-time NBA champion and Warriors point guard, <a href="https://cms.blockworks.co/news/ftx-names-stephen-curry-a-global-ambassador/" target="_blank" rel="noreferrer noopener">became a global ambassador for FTX</a> in September 2021. He also received an equity stake in FTX Trading Limited as part of the agreement.



Then, FTX US and its NFT marketplace <a href="https://cms.blockworks.co/news/ftx-us-partners-with-golden-state-warriors/" target="_blank" rel="noreferrer noopener">became the Warriors’ official cryptocurrency platform</a>. 



In April 2022, the team dropped its second NFT collection — commemorating its 2022 NBA playoffs performance — on the FTX NFT marketplace. The site is offline at the time of writing.



The Warriors were the first professional sports team to launch an NFT collection when they dropped various editions of the team’s six NBA championship rings and 10 commemorative ticket stubs.



According to <a href="https://www.espn.com/nba/story/_/id/35028576/golden-state-warriors-pause-all-ftx-related-promotions" target="_blank" rel="noreferrer noopener">ESPN reports</a>, the final FTX promotion took place Monday night at the Warriors vs. Spurs game when bobble heads of one of its players, Jordan Poole, were given out to fans.



Miami Heat’s home needs a new name



On Friday, the Miami Heat NBA team ended its naming rights deal with FTX. The deal was for <a href="https://www.nba.com/heat/news/heat-partners-with-ftxus" target="_blank" rel="noreferrer noopener">$135 million over 19 years</a> and included $2 million annual payments to the Miami Heat. The crypto exchange had taken over the rights of what was formerly known as the American Airlines Arena, in June 2021.



The team tweeted that the reports about FTX were “extremely disappointing” and referenced Miami-Dade county’s Peace and Prosperity Plan initiative that was funded by this partnership to address gun violence in the area.



<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">Miami-Dade County and the Miami HEAT have released the following statement <a href="https://t.co/ERZo1IsZ2o">pic.twitter.com/ERZo1IsZ2o</a>&mdash; Miami HEAT (@MiamiHEAT) <a href="https://twitter.com/MiamiHEAT/status/1591219414225293312?ref_src=twsrc%5Etfw">November 12, 2022</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



The county collected $20 million on the FTX naming rights deal, <a href="https://www.local10.com/news/local/2022/11/13/miami-dade-mayor-ftx-paid-20m-to-county-before-naming-rights-deal-ended/" target="_blank" rel="noreferrer noopener">according</a> to local reports. 



The county is searching for a new partner to name the home of the Miami Heat. All signs of FTX have been taken down from the arena’s facade at time of writing.



<hr class="wp-block-separator">
Get the day’s top crypto news and insights delivered to your email every evening.&nbsp;<a href="https://cms.blockworks.co/newsletter/?source=end" target="_blank" rel="noreferrer noopener">Subscribe to Blockworks’ free newsletter</a>&nbsp;now.
 
Want alpha sent directly to your inbox? Get degen trade ideas, governance updates, token performance, can’t-miss tweets and more from&nbsp;<a href="https://blockworks.co/newsletter/research" target="_blank" rel="noreferrer noopener">Blockworks Research&#8217;s Daily Debrief</a>.
 
Can&#8217;t wait? Get our news the fastest way possible.&nbsp;<a href="https://t.me/blockworks_news" target="_blank" rel="noreferrer noopener">Join us on Telegram</a> and follow us on <a href="https://news.google.com/publications/CAAqBwgKMPyTxgswn6_dAw" target="_blank" rel="noreferrer noopener">Google News</a>.
<hr class="wp-block-separator">

Golden State Warriors and Miami Heat Axe FTX Deals

<div id="highlights-block_63505f4e5b4e3" class="highlights">
 <ul>
 <li>Blockchain gaming company Limit Break plans to feature its DigiDaigaku NFT collection in the Super Bowl spot it bought for $6.5 million</li>
 <li>OKX seeking to create “aspirational” ad about the potential of Web3, OKX Chief Marketing Officer tells Blockworks</li>
 </ul>
 
</div>



Just like 2022’s NFL season, the crypto bear market — which has lasted much longer — trudges on. And while many have cut costs, not all crypto firms are backing down from spending. Some are even gearing up to dish out millions of dollars on Super Bowl ads to build brand awareness.&nbsp;



The 2022 Super Bowl offered <a href="https://cms.blockworks.co/super-bowl-ads-spark-public-interest-coinbase-site-crashes-from-traffic/" target="_blank" rel="noreferrer noopener">a spotlight on the crypto industry</a> less than three months after bitcoin (BTC) and ether (BTC) hit all-time highs, featuring advertisements from FTX, Coinbase, Crypto.com and others. The price of BTC and ETH are each down more than 70% from those peaks.



Though a more-tempered representation is expected this time around, blockchain gaming company Limit Break said last week it bought a Super Bowl ad for $6.5 million. Crypto exchange OKX is also planning to purchase a television spot for the game, Chief Marketing Officer Haider Rafique told Blockworks.&nbsp;



Rafique estimated the cost — between the ad itself, as well as creating the idea for and producing the commercial — could total more than $10 million. He called the company’s recent <a href="https://www.youtube.com/watch?v=6U2Nai5xVvA" target="_blank" rel="noreferrer noopener">“What is OKX?”</a> campaign a preamble to its 2023 marketing efforts, starting with the Super Bowl.



The ad is likely to focus on OKX’s self-custody Web3 wallet, Rafique said.&nbsp;&nbsp;



“When you see a Super Bowl ad from us, it will be about not the future of crypto or finance, but it will likely be about the future of Web3, and the ability for people to read, write and own on the web — and what does that look like for entrepreneurs, for small businesses, for creators and all of us,” he added.



The exchange purposefully held back on marketing during the bull market, Rafique said, allowing it to push forward with marketing initiatives in recent months while competitors have pulled back.&nbsp;



The exchange, for example, <a href="https://cms.blockworks.co/crypto-exchange-okx-inks-f1-mega-deal/" target="_blank" rel="noreferrer noopener">revealed a partnership with Formula 1’s McLaren Racing</a> in a multi-year deal worth “hundreds of millions” in May.&nbsp;



“When the market goes down, people have more skepticism around our industry,” Rafique said. “That’s the time when we should be doing storytelling.”



<h3>A spotlight on NFTs</h3>



While OKX has not yet finalized its media buy for the Super Bowl, Limit Break has.&nbsp;



The company, founded by mobile game creators Gabriel Leydon and Halbert Nakagawa, is set to feature its DigiDaigaku NFT collection in the television spot. Limit Break gave away the collection during a free mint in August around the time the company raised $200 million from Buckley Ventures, Standard Crypto, Paradigm Ventures, FTX, Coinbase Ventures and others.



The company said in a statement last week that the ad would include a &#8220;Web3 experience&#8221; but declined to share specifics.



“I can assure you that you haven&#8217;t seen what we&#8217;ll be coming out with,” Leydon told Blockworks in an email. “Having this ad is exciting for us because prior to the Super Bowl, there&#8217;s going to be millions of people who have never heard of an NFT.”&nbsp;



The promotion of an NFT collection during the Super Bowl is especially interesting, according to Coinbound CEO Ty Smith, as people will be able to see the effect of the ad on the collection’s volume and price in real time.&nbsp;



“I’m not sure there’s too many products that have that type of insight possible and, as marketers, is something we are watching,” the crypto marketing firm founder said.



By gaining access to roughly 50 million people watching the Super Bowl on television and an expected additional 10 million watching online, Leydon said that the commercial purchase is a way to grow the current DigiDaigaku community that currently consists of roughly 20,000 followers across Twitter and Discord.



<h3>Who will buy again?</h3>



FTX, Coinbase, Crypto.com and eToro each made ad buys during the US Super Bowl broadcast in February, as <a href="https://www.youtube.com/watch?v=Ut3m9OK1c7Y" target="_blank" rel="noreferrer noopener">FTX</a> and <a href="https://www.youtube.com/watch?v=FUygWsIj_GU" target="_blank" rel="noreferrer noopener">Crypto.com</a> ran commercials featuring Larry David and LeBron James, respectively.



FTX CEO Sam Bankman-Fried said during a discussion hosted by the Bipartisan Policy Center last week that celebrity-fueled crypto ads are less about gaining retail customers than they are about fostering institutional relationships — a concept he admitted seemed counter-intuitive.



“It’s a foot in the door, is what it really is,” he said. “It’s a, ‘Please stop declining our meeting requests and have the meeting so that we can talk about a way we can potentially work together.’”



<a href="https://www.youtube.com/watch?v=eIUD_NE1BDo&amp;t=3s" target="_blank" rel="noreferrer noopener">Coinbase’s 60-second advertisement</a> in February featured a QR code that directed people to a promotional page on its website offering new users free bitcoin. <a href="https://www.youtube.com/watch?v=7O4rP3qwlfo&amp;t=29s" target="_blank" rel="noreferrer noopener">The 30-second ad by eToro</a> promoting “social investing” mentioned crypto several times.



Spokespeople for the four companies declined to comment on whether they would advertise during the Super Bowl again.&nbsp;



Crypto platform Bitbuy was the only firm in the space to advertise on the Super Bowl’s Canadian broadcast. <a href="https://www.youtube.com/watch?v=aI3LNq_lres" target="_blank" rel="noreferrer noopener">The Bitbuy commercial</a> featured NBA star Kyle Lowry.&nbsp;



Though the company’s online marketing spend in the year’s second half has remained consistent to pre-market downturn levels, according to Binu Koshy, Bitbuy’s director of communications, it greatly reduced its offline marketing spend, he said, which includes Kyle Lowry commercials.



“[It’s] not because we don&#8217;t believe in the medium, but because we felt the messaging in the commercials were not reflective of the current market realities, so it wouldn&#8217;t perform,” Koshy said. “We&#8217;ve also noticed that presently none of our top competitors here in Canada are advertising on offline media channels that they were in the past. Obviously that could change.”



Though Koshy said he could not comment on whether the company would run an ad in the 2023 Super Bowl, he noted Bitbuy has “ambitious marketing plans” for next year.&nbsp;



“We will continue to promote the benefits of using a regulated and locally based crypto-trading platform like Bitbuy over unregulated international exchanges,” Koshy said.&nbsp;



<h3>A different message?</h3>



There may be fewer digital asset-related ads during the 2023 Super Bowl, said Keli Callaghan, a partner at Arrington Capital who formerly led marketing at Algorand. But many entities in this space have a long-term vision and recognize the need for continued education, she added.



“I hope that those that do come to light will be more impactful in terms of educating the US more broadly on the real benefit of being able to exchange value in decentralized models and expand financial participation,” Callaghan said.



Coinbound CEO Ty Smith said he expects crypto messaging during the Super Bowl to have a bit more “gravitas” and foresees the major players positioning crypto as an interesting addition to an investment portfolio.



“The markets are down and a lot of people got burned last year,” Smith said. “Everyone knows that, and I think aware marketing teams are going to acknowledge it while still [educating] viewers about the long-term possibility of Web3.”



<hr class="wp-block-separator">
Get the day’s top crypto news and insights delivered to your email every evening.&nbsp;<a href="https://cms.blockworks.co/newsletter/?source=end" target="_blank" rel="noreferrer noopener">Subscribe to Blockworks’ free newsletter</a>&nbsp;now.
 
Want alpha sent directly to your inbox? Get degen trade ideas, governance updates, token performance, can’t-miss tweets and more from&nbsp;<a href="https://blockworks.co/newsletter/research" target="_blank" rel="noreferrer noopener">Blockworks Research&#8217;s Daily Debrief</a>.
 
Can&#8217;t wait? Get our news the fastest way possible.&nbsp;<a href="https://t.me/blockworks_news" target="_blank" rel="noreferrer noopener">Join us on Telegram</a> and follow us on <a href="https://news.google.com/publications/CAAqBwgKMPyTxgswn6_dAw" target="_blank" rel="noreferrer noopener">Google News</a>.
<hr class="wp-block-separator">

What Crypto Super Bowl Ads Can We Expect in 2023?

Michael Bodley

<div id="highlights-block_62a3c63109912" class="highlights">
 <ul>
 <li>The layoffs follow those made by rival exchanges Coinbase and Gemini</li>
 <li>A spokesperson for the exchange said the company would continue to focus on its strategy of partnering with famous athletes with digital asset dealings</li>
 </ul>
 
</div>



In the latest harbinger of troubles in cryptocurrency markets, top exchange Crypto.com is laying off a good chunk of its workforce, according to three sources with knowledge of the matter.



The cuts — which follow Coinbase taking <a href="https://cms.blockworks.co/coinbase-latest-crypto-firm-to-cut-costs-amid-market-downturn/" target="_blank" rel="noreferrer noopener">the rare step</a> of rescinding accepted offers and instituting a hiring freeze, plus Gemini laying off 10% of its employees — are the latest begrudging reaction to a beaten-up digital asset market stuck in the doldrums. And they are, sources said, an indication that the yearslong effort by liquidity providers to diversify revenue streams away from spreads on trading fees has yet to bear enough fruit. 



A number of the dismissed, sources said, were well-compensated senior personnel who were valued but difficult to justify when it came to the pressing necessity of cutting costs.&nbsp;



A spokesperson for Crypto.com told Blockworks the company recently made the “difficult decision” to carry out “targeted reductions” totaling 260 staffers, or 5% of its workforce.&nbsp;



Sources were granted anonymity to discuss sensitive business dealings.



“I don’t know how long this crypto winter, if we’re in one, is going to last,” one source said. “Some people are saying six to 12 months. Others are saying two years. But [these layoffs] are just the tip of the iceberg. It’s easy to hire big when the going’s good. But the going’s not good, all of a sudden.”&nbsp;



Another source said exchanges have become “entirely dependent on trading fees — a race to the bottom,” adding that it’s a hard income stream to get away from, without launching new business lines that style-drift away from an exchange’s core business of matching crypto buyers with sellers.&nbsp;



The industry&#8217;s struggles come at a time when institutional investors from the buttoned-up world of stocks and bonds and commodities are increasingly taking digital assets seriously. Even if big-money investors have yet to deploy capital, they’re almost all devoting time and resources to get up to speed, industry participants say.&nbsp;



“It’s brutal that this is happening now, when we finally start to get taken seriously, after beating this drum for who knows how long,” the third source said. “But we’ll bounce back.”



The Crypto.com spokesperson said the exchange remains focused on shoring up product and engineering capabilities, as well as partnering with professional sports teams, which the exchange deems will “play a crucial role in our mission to accelerate the world’s transition to cryptocurrency.”



Indeed, Crypto.com signed Lebron James as the face of its advertising efforts, capping off a $1 billion push that included a splashy <a href="https://cms.blockworks.co/exchanges-compete-to-grab-super-bowl-spotlight/" target="_blank" rel="noreferrer noopener">Superbowl</a> ad purchase. 



There are still signs of growth. At the end of May, Crypto.com <a href="https://cms.blockworks.co/crypto-com-hires-to-further-web3-ambitions/" target="_blank" rel="noreferrer noopener">poached an executive</a> from rival exchange Bittrex, Kwon Park, who is leading the company’s Web3 strategy. The company also received conditional approval to <a href="https://cms.blockworks.co/crypto-com-secures-provisional-approval-to-open-crypto-exchange-in-dubai/" target="_blank" rel="noreferrer noopener">expand its operation</a> to Dubai, joining the likes of Binance, FTX and Bybit in the emirate.



<hr class="wp-block-separator">
Get the day’s top crypto news and insights delivered to your email every evening.&nbsp;<a href="https://cms.blockworks.co/newsletter/?source=end" target="_blank" rel="noreferrer noopener">Subscribe to Blockworks’ free newsletter</a>&nbsp;now.
 
Want alpha sent directly to your inbox? Get degen trade ideas, governance updates, token performance, can’t-miss tweets and more from&nbsp;<a href="https://blockworks.co/newsletter/research" target="_blank" rel="noreferrer noopener">Blockworks Research&#8217;s Daily Debrief</a>.
 
Can&#8217;t wait? Get our news the fastest way possible.&nbsp;<a href="https://t.me/blockworks_news" target="_blank" rel="noreferrer noopener">Join us on Telegram</a> and follow us on <a href="https://news.google.com/publications/CAAqBwgKMPyTxgswn6_dAw" target="_blank" rel="noreferrer noopener">Google News</a>.
<hr class="wp-block-separator">

sports marketing