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The fall of cryptocurrency platforms: a danger for sport?

Declared bankrupt in November, the cryptocurrency giant FTX embarrassed many athletes and other organizations. The fall of this company should not be the only one and across the Atlantic, the main investors who were Tom Brady or Stephen Curry are inflicted with a huge financial loss.

This backlash risks having repercussions beyond the investment funds held by the two American sports stars. It also concerns franchises and major leagues.

Not all digital partnerships are equally successful

HAS a dark hour of cryptocurrency, which was nevertheless presented as revolutionary, it is easy to see that the partnerships are not as fruitful as each other with regard to these same digital platforms.
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The naming of sports halls takes a hit in the United States

Launched in 2019, FTX quickly pulled out all the stops by, for example, buying the name of the Miami venue in the NBA. Renamed FTX Arena for 135 million over 19 years, the venue will have to change its name and the entire Heat franchise finds itself shaken by this strategic error.

The race for notoriety between the different players in this sector will have had an impact in its downfall with exorbitant and almost meaningless contracts. Today, it is difficult not to highlight the Crypto.com contract, having put its name on the legendary Staples Center from Los Angeles. Also in great difficulty, the company nevertheless signed a contract worth 700 million dollars for this simple naming.

Without a doubt, the fall of FTX is a huge blow for American sport and its main partners, like the MLB or the Warriors NBA franchise. With a partnership signed with Coinbase, the basketball league is looking at the general situation with great concern according to Peter Laatz, director of IEG, a company specializing in sports sponsorship. The contract to the tune of 192 million is more than ever in danger.

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F1 will have to look elsewhere

In full media expansion, F1 and the various teams on the grid are a showcase of choice for brands and companies. Naturally, cryptocurrency platforms, like FTX at Mercedes, ran in search of an advertising space on the single-seaters.

During this 2022 season, all ten teams had at least one partnership with this type of platform. Today, prices are collapsing for all of them and it is a safe bet that none will be seen in the paddock in 2023.