Crypto.com's Aggressive Advertising Campaign – A Good Thing For The Market?

The exchange, which was founded in 2016 as Monaco and later purchased the Crypto.com domain, has been gradually building partnerships with sports organizations and even actors outside of the crypto and sports scenes.

Crypto.com Marketing

Crypto.com purchased the naming rights to the iconic Staples Center, which is home to various Los Angeles basketball teams, including the Lakers. The agreement, which was completed on November 17, will rename the stadium “Crypto.com Arena” for the next 20 years. While the parts did not reveal the amounts of the deal, Bloomberg reported that two people familiar with the details said the deal was worth more than $700 million delivered over the next 20 years.

While this is the most notable deal made by the brand recently, it is far from the only one. Crypto.com has also pursued sponsorship deals with Formula One, the Italian Serie A, and other NBA teams such as the Philadelphia 76ers.

Crypto.com even agreed to pay Matt Damon $100 million to be the exchange’s public face in a series of commercials as part of a global campaign called “Fortune Favors The Brave.”

Is This Beneficial to the Market as a Whole?

From a purely observational standpoint, sponsorship deals are intended to familiarize people with a brand and entice them to use whatever products and services the advertised brand provides. This is primarily the goal of Crypto.com’s advertising spending spree. Aside from that, the advertising has another task, and that is to familiarize people who are still unfamiliar with cryptocurrencies with these new instruments.

This is the true value of the advertising investments made not only by Crypto.com, but also by other high-profile exchanges such as FTX, which recently purchased the naming rights to the American Airlines Arena in Miami, renaming it the FTX Arena, and even purchasing a spot in the Super Bowl: to demonstrate that cryptocurrency is present in these spaces that were previously dominated by car brands or airlines, and to make them part of the daily lives of users and fans of cryptocurrency.

In this sense, it greatly benefits the broader crypto market because it increases cryptocurrency’s visibility in traditional markets while also encouraging people to learn more about cryptocurrencies and how they are used. This, in turn, may lead people to seek out other cryptocurrency-based investment options, such as other exchanges.

Until now, the strategy has been profitable for them. According to CoinShares CEO Meltem Demirrors, the token price has increased by more than 50% since the Staples Center deal was announced. She stated,

“As a result of the PR, its token price doubled, resulting in a $9 billion increase in market cap. The deal paid for itself 13 times over, it was difficult to figure out who benefited from token distribution, but it was a smart token marketing strategy!”

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