A year after the “Crypto Bowl”, crypto ads disappear from the big game

[ad_1]

KEN SWEET and MAE ANDERSON Associated Press

NEW YORK How the mighty have fallen.

Cryptocurrency companies grabbed the spotlight during the 2022 Super Bowl, with ads from a handful of newcomers to the biggest advertising scene: FTX, Coinbase, Crypto.com and eToro. Some marketing experts have dubbed it the “Crypto Bowl”.

A year later, the industry was humbled by a massive drop in crypto prices, as well as the bankruptcy of several well-known companies.

The dramatic turnaround dates back to 2000, when dot-com companies such as Pets.com aired Super Bowl ads, only to go bust within a year or two.

This year, crypto companies have “no representation,” said Mark Evans, executive vice president of ad sales for Fox Sports.

Here’s a look at the crypto companies that advertised during last year’s Super Bowl and where they stand now:

People also read…

FTX: bankrupt

Cryptocurrency exchange FTX was one of the biggest Super Bowl advertisers last year, with ads including famous comedian Larry David. While at the time FTX was the second or third largest crypto exchange in the world, it did not operate a large business in the United States.

Within 10 months of the Super Bowl, FTX was bankrupt. The Bahamas-based company collapsed after investors began withdrawing deposits due to concerns over the company’s balance sheet. The company filed for Chapter 11 bankruptcy on November 11.

FTX Founder and CEO Sam Bankman-Fried has been arrested and charged with defrauding clients of billions of dollars. He is to be tried in October.

David, along with other celebrities such as football star Tom Brady and basketball star Stephen Curry, have been named in a lawsuit that argued their celebrity status made them guilty of promoting the model failing business of the company.

Although Crypto.com is still in business, the company is significantly less healthy than it was a year earlier.

The Singapore-based company announced in January that it was laying off 20% of its workforce, in addition to the layoffs implemented at the end of 2022. The company also revealed that a significant portion of its assets are tied to crypto coins. poor quality currency like the Shiba Inu coin.

Like FTX, Crypto.com tried to make a name for itself through sports sponsorship. The company spent $700 million on naming rights to the old Staples Center, where the Los Angeles Lakers play. It is now the Crypto.com Arena. The company’s 2022 Super Bowl ad featured basketball superstar LeBron James, with the tagline “fortune smiles on the brave.”

Crypto.com said its layoffs were due to a “confluence of negative economic developments,” but its CEO blamed much of FTX’s collapse.

COINBASE: In legal hot water

Coinbase had one of the weirdest Super Bowl ads of at least the year, involving a floating QR code that would lead users to a promotion where the company was giving away millions of dollars worth of cryptocurrencies. Marketing experts named it one of the most successful commercials in gaming because it took people by surprise and stood out, although many viewers found it confusing.

Coinbase’s publicly traded shares have fallen more than 70% since last year’s game. With the fall of digital currencies such as bitcoin, the company saw its trading revenue dry up as investors avoided buying crypto altogether.

The company also announced layoffs equivalent to around 20% of its workforce and the company’s CEO said the company is preparing for what they call “a crypto winter”.

Additionally, Coinbase has caught the eye of US regulators. The company had to pay $100 million to settle a New York State investigation into whether it allowed users to open accounts without proper background checks. The Securities and Exchange Commission is also considering whether to ban the practice of cryptocurrency “staking,” which had been big business for Coinbase in the past.

ETERO: No news, good news?

The fourth crypto company to post a Super Bowl ad last year was eToro. The Israel-based company ran an advertisement promoting “social investment”.

Unlike FTX, Coinbase, and Crypto.com, eToro has largely avoided any negative news over the past year. The company has expanded its offerings beyond crypto to allow users to purchase stocks and options as well as non-fungible tokens, better known as NFTs.

Be the first to know

Get local news delivered to your inbox!

[ad_2]