The Crypto market is no stranger to various big-budget projects failing significantly in a relatively short span of time. But one particular cryptocurrency exchange that managed to fail significantly recently was Crypto.com.
Crypto.com will go down in history as a prime example of why money is not enough to make it big in the crypto market. Despite trying their best to buy their way up to the top of the crypto market, one of the key aspects of the business that they spent their money on was marketing.
More specifically, they focused too much on bringing more customers into the market but didn’t give much thought on how to maintain that audience. They were also able to get one of their ads on the Superbowl, making history as the first cryptocurrency exchange to advertise there.
Unfortunately, the firm spread itself too thin and ended up making various bad choices that cost them both their reputation and their customers. With executives laying off their staff for months to new onboarding schemes that never really took off, Crypto.com really did manage to make waves for two completely separate reasons.
Cutting Down its Workforce
The general public will always be more inclined towards the employees of a company, than the company itself. And one of the fastest ways to start burning the goodwill that you have gained is by almost instantly cutting down your workforce.
According to various reports, the company had managed to fire over 2,000 employees from its peak back in 2021. A company firing a large chunk of its workforce is never a good sign, but firing employees at this scale can be even worse.
From a total workforce of over 5,000 people, the firm continued to lay off hundreds of employees.
The Laughably Bad Advertisement
While Crypto.com was one of the first crypto exchanges to have its face on the Super Bowl, the ad itself really could’ve used some extra work. Despite pouring in millions for producing and broadcasting the ad, it became the internet laughingstock in a matter of minutes.
The ad took itself so seriously that it equated buying crypto to space travel or riding a ship down the high seas. It was overindulgent and silly, to the point where SouthPark got away with making an entire episode on it.
Cutting Down Marketing Spending
The final nail in the coffin for the business was the cut to its marketing budget. Crypto.com was famous, or in some cases infamous, for its advertising and marketing, and now it had lost that. The company backed out of various major deals with e-sports teams and various other sports teams.
The company also managed to get in trouble with the UK Advertising Standards Authority for its very questionable marketing choices.