Crypto.com, one of the largest cryptocurrency exchanges has also started showing signs of being impacted by the crypto market downturn.
The exchange has recently made a few decisions that would impact the reputation of cryptocurrencies both directly and indirectly.
The reports reveal that Crypto.com has started to scale down several of the sponsorship deals it had formed with multiple sports entities.
Crypto.com’s Goal behind Sponsorship Deals
In the past couple of years, the exchange partnered with multiple sports companies and organizations in order to form sponsorship contracts.
Crypto.com’s goal behind these deals was to gain as much recognition as possible. Sports are a major source of advertising a product or a company to millions of fans and viewers all over the world.
The exchange wanted to expose itself to the entire world. It has been advertising itself through multiple sponsorship deals be it a football t-shirt, an F1 car, or an entire football stadium.
By putting its logo through multiple mediums, the exchange created curiosity among the viewers not only in its services but also for cryptocurrencies.
It was becoming one of the reasons to bring the masses to the crypto sector, creating more awareness about crypto-blockchain in the mainstream sector.
Crypto.com Scales down its Deals
Unfortunately, not even Crypto.com, a major cryptocurrency exchange was able to save itself from the great crypto market downturn.
The crypto winter has been prolonged and is considered the longest downfall the industry has witnessed since 2020. The crypto downfall began in early 2022 and is yet to be fixed.
The cryptocurrency exchange recently announced that it had to lay off many of its employees. The reason was indeed the market downturn that forced the exchange to cut down its costs and save up as much money as possible.
The exchange has been trying to deal with the current downfall as best as it can but as the downfall continues, it has to make harsh decisions to survive.
Cancellation of Sponsorship Agreements
Just recently, one of the reporting firms known as Ad Age reported that Crypto.com had to cut down multiple sponsorship deals with sports companies.
Some of the major cuts with organizations include Twitch Rivals, an eSports tournament host, Qatar’s FIFA World Cup 2022, and Angel City Football Club of Los Angeles.
The firm has revealed that as per the inside sources, Crypto.com had been planning to do this since May. It is now that the company has proceeded with the deal cancellations after giving much thought to the entire process.
Crypto.com even backed out of the UEFA Champions League’s sponsorship deal that was worth $500 million.
In the future, the exchange may also back out from deals such as Formula 1 and the Australia Football League.
With the number of deals Crypto.com has cut, it is possible it may get sued by the partners and may end up getting bankrupt.