Crypto.com’s sports sponsorships persist: ‘Business as usual’

Fenika Bench

Crypto.com said that it is business as usual with its sports sponsorships, including for the FIFA World Cup in Qatar that starts Sunday, despite chaos in the cryptocurrency industry unleashed by the bankruptcy of rival exchange FTX. Crypto.com has a range of major sponsorships that combined are worth well into the nine figures, including deals with FIFA and F1; naming rights for the Lakers’ arena; title sponsorship of the F1 race in Miami; and team deals with the 76ers and Aston Martin F1 Team. But despite the apparent collapse of all of FTX’s sponsorships, Crypto.com CMO Steve Kalifowitz told SBJ last night that he was on a plane to the World Cup and said in a text message, “We have a strong relationship with all of our partners. It’s business as usual.” Aston Martin F1 Team Managing Dir Jefferson Slack this morning told SBJ that the team is confident that Crypto.com was not engaging in the same sort of allegedly risky trading that FTX is accused of. Slack: “They have explained to us that they have an exchange platform and are not taking risks like the ones FTX took. FTX made mistakes by doing that with their trading arm. Crypto.com are great partners and truly solid and they will continue to work with us — they’ve been very transparent about their situation and we feel fortunate to have them.” The crypto exchange says it has 70 million users across the world.

OFFERING ASURANCES: There have been concerns this week that Crypto.com could run into a similar fate as FTX, particularly after it was discovered that Crypto.com had sent $400M worth of Ethereum to a different exchange in October. However, Crypto.com CEO Kris Marszalek later said that the transaction was sent by mistake, that it was rectified and that the exchange has 1:1 reserves of all customer assets. Marszalek also tweeted on Monday night that after a run of customer withdrawals on the site over the weekend, sparked by the concerns, its withdrawal queue on Monday night was down 98% over the prior 24 hours and that the exchange was functioning normally.

Crypto.com has a range of major sponsorships that combined are worth well into the nine figures, including deals with F1, among othersGetty Images


https://www.sportsbusinessjournal.com/Daily/Issues/2022/11/16/Marketing-and-Sponsorship/Crypto-dotcom-says-sports-deals-are-fine.aspx

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