Crypto Firms Drop Super Bowl Ads After FTX Collapse

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VaynerX President and VaynerMedia CEO Gary Vaynerchuk talks to “Fox & Friends Weekend” about the three commercials his company is running during Super Bowl LVII.

Cryptocurrency firms are set to remain on the sidelines of this year’s Super Bowl — a year after dominating the big game’s advertising space — as the industry seeks to rebound from the FTX crash.

Super Bowl commercials are some of the most expensive airtime on television, costing up to $7 million for a 30-second commercial. Last year’s Super Bowl saw several of the biggest companies in the crypto industry running advertisements during the game, prompting some marketing experts to dub it the “Crypto Bowl.”

This year’s Super Bowl will be a stark contrast, as crypto companies have “zero representation,” according to Mark Evans, executive vice president of ad sales for Fox Sports. The turnaround is somewhat reminiscent of the 2000 Super Bowl, when several dot-com companies ran ads but went bankrupt a year or two after bursting into the national spotlight.

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Cryptocurrency firms are set to remain on the sidelines of this year’s Super Bowl — a year after dominating the big game’s advertising space — as the industry seeks to rebound from the FTX crash. (Reuters/File/Reuters Pictures)

Crypto exchange FTX was one of the biggest Super Bowl announcers last year and aired a commercial featuring famed comedian Larry David from HBO’s “Curb Your Enthusiasm.”

FTX’s Super Bowl commercial featured David portraying characters skeptical of a range of inventions, from the wheel and indoor toilets to the light bulb and walkman.

He touted FTX as a “safe and easy way to get into crypto” and told viewers, “Don’t be like Larry, don’t miss out on crypto, NFTs, the next big thing.” David’s character concluded, “Hey, I don’t think so, and I’m never wrong about that stuff, ever.”

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Crypto exchange FTX was one of the biggest Super Bowl announcers last year and aired a commercial featuring famed comedian Larry David from HBO’s “Curb Your Enthusiasm.” (Angel Garcia/Bloomberg via Getty Images/File/Getty Images)

In November, FTX went bankrupt and wiped out billions of dollars of investor money. FTX founder Sam Bankman-Fried faces several federal charges related to investor fraud that could land him in jail for decades. His trial is tentatively scheduled for this year.

David and several other celebrities supporting FTX, including sports stars Tom Brady and Steph Curry, have been named in a lawsuit that alleges their status made them guilty of promoting the company’s failing business model.

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FTX founder Sam Bankman-Fried arrives in Manhattan Federal Court on February 9, 2023 in New York City. (Michael M. Santiago/Getty Images/File/Getty Images)

Another company that ran a high-profile ad during last year’s Super Bowl, Crypto.com, announced in January that it would lay off 20% of its workforce in addition to other cuts announced towards the end of 2022. The firm’s CEO blamed a “confluence of negative economic developments” and cited the impact of FTX’s collapse on the crypto space as a significant factor.

A year ago, Crypto.com ran a Super Bowl ad featuring basketball star LeBron James talking to himself, 18, in 2003 about technological advancements for decades to come. Although he didn’t mention crypto, the Crypto.com logo and its marketing slogan – “Fortune smiles on the brave” – ​​appeared at the end.

Actor Matt Damon had previously appeared in a Crypto.com ad with the slogan ‘Fortune smiles on the brave’, which was later used by the satirical TV show ‘South Park’ to ridicule the movie star and others celebrities supporting crypto companies.

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Coinbase ran an ad during last year’s Super Bowl that featured a floating QR code for a promotion in which the company was giving away millions of dollars. Marketing experts named it one of the most successful commercials in gaming as it surprised viewers and stood out, although many viewers found it confusing.

Over the past year, Coinbase shares have fallen more than 70% and the company has had to lay off about 20% of its workforce amid a “crypto winter.” The company also finds itself under the regulatory microscope following a recent $100 million settlement with New York State over insufficient vetting of users creating accounts and an ongoing investigation by the Securities and Exchange. Commission on the Cryptographic Practice of “Staking”.

Ticker Security Last Change Change %COIN COINBASE GLOBAL INC. 57.09 -2.54 -4.26%

The Associated Press contributed to this report.

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