- Cryptocurrency sports activities sponsorships have fallen 38% since 2021 however are exhibiting indicators of restoration in 2024.
- The collapse of FTX in 2022 precipitated a serious setback for crypto sports activities sponsorship offers.
- A rise of 26 crypto sponsorships in 2024 suggests a cautious market restoration.
Crypto firms have a historical past of turning to sports activities sponsorships to achieve public consideration. However the recreation has modified so much because the peak of 2021. In accordance with a Coingecko report, the autumn of main gamers like FTX and a pointy market downturn in 2022 led to a big drop in new offers. With 26 new sponsorship offers signed in 2024, is the connection between crypto and sports activities on the mend?
The crypto bull market sparked a growth in sponsorship offers in 2021. Crypto firms secured 33 new partnerships, accounting for 35.9% of all offers from 2021 to 2024. Notable offers embody Crypto.com's $700 million naming rights deal for Staples Middle and FTX's $210 million sponsorship cope with Group SoloMid in esports. These sponsorship offers had been geared toward making crypto a reputable driver of mainstream sports activities.
Additionally learn: The FTX saga continues: Victims battle for his or her share of the loot
Nevertheless, the 2022 market crash has precipitated a big setback. The variety of new sponsorships has dropped to 25, and lots of firms have canceled or frozen present partnerships. FTX's collapse has despatched shockwaves all through the trade, resulting in the termination of offers equivalent to FTX's partnership with Miami Warmth. Nonetheless, firms like Bybit and Vechain have been in a position to shut high-value offers, stopping the trade from stalling out fully.
The downward pattern continued into 2023. With solely eight new offers, it was clear that many firms are nonetheless hesitant. Contract renewals accounted for 14 extra offers, however there was no important progress. Nevertheless, OKX secured a $70 million sponsorship cope with Manchester Metropolis, exhibiting that some crypto firms nonetheless see worth in long-term sports activities sponsorships.
2024: An indication of restoration?
Although removed from the 2021 highs, there was a notable improve in new sponsorships in 2024, with 26 offers signed. Crypto.com returned with a UEFA Champions League sponsorship, and BlockDAG signed a $10 million cope with Borussia Dortmund. Whereas the overall variety of offers solely represents 28.3% of the 2021-2024 whole, the rise suggests a cautious restoration.
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