Crypto.com's UEFA Champions League sponsorship deal collapsed at the last minute
Cryptocurrency exchange Crypto.com pulled out of a major sponsorship deal with the UEFA Champions League at the most pivotal moment of the deal.
According to Sport Business, Crypto.com has supported a five-year, $100.6 million annual UEFA Champions League sponsorship deal. Champions League this summer. However, the drop of over $2 trillion in crypto market capitalization over the past half-year has taken a toll on the exchange's finances, and the end result is a funding agreement between the pair. The side broke down at the last minute.
While the partnership with Crypto.com has officially ended, UEFA still has many "giant" sponsors such as, Heineken, Mastercard, Fedex and Sony PlayStation in addition to a few. remaining prominent names. In contrast, Crypto.com continues to maintain its involvement in another football partnership, as a sponsor for the 2022 World Cup in Qatar.
Perhaps the failure with UEFA comes from the reason that Crypto.com was too "bottled" in the field of sports sponsorship to expand brand promotion for the platform without a limited budget. risks for the recession cycle, causing the exchange to gradually lose its financial balance between the problem of maintaining business operations and external financing.
The proof is that despite being rated as one of the exchanges with the most "huge" value sports sponsorship deals on the market, Crypto.com is the name that announces staff cuts first (260 employees) when the “crypto winter” has just arrived.
At the same time, the exchange also reduced the user reward, the main reason for the Cronos token (CRO) to plunge more than 30% in just a few days, before there was a change in policy when receiving a lot of bricks from the community. Until the middle of the liquidity crisis, Crypto.com was targeted by public opinion, accusing it of restricting users to withdraw money.
From these facts, it can be confirmed that in the sports sponsorship “marketplace”, Crypto.com stands on par with Binance and FTX, but when something goes wrong, Crypto.com will immediately fall short. a little bit.
However, Crypto.com does not seem to realize its own vulnerability through planning to prepare for a $700 million sports field upgrade.
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Sep 01, 2022