Sports Sponsorship Is Unlikely To Save The Crypto Firm From Crypto Winter

Cryptocurrency in the sports industry is gaining popularity. Thanks to blockchain technology.

Cryptocurrencies make use of blockchain and decentralized finance to complete user transactions. Over the years, blockchain technology has witnessed huge popularity. The platform allows users to make various innovations. The technology also provides useful insights using metrics, data analytics, and smart contracts. Other than cryptos, blockchain technology is now used in various industries including sports. For more information about the Bitcoin 360 ai by clicking here: https://bitcoin-360-ai.org/

How digital currency is used in sports?

The use of digital currency in sports transactions has become a common phenomenon now. Bitcoin and other crypto tokens are used as payment options by many sports companies. Cryptocurrency has also made buying a faster and easier option on the internet. 

Partnerships, payment, and sponsorship using cryptos

Various athletic platforms today accept Bitcoin payments. We have also come across scenarios wherein buyers can use Bitcoin to buy tickets. 

As the next step to this, certain sports companies have also gone a step ahead. Today sports companies provide sponsorship and entitlements using Bitcoin payments. 

Cryptos gaining momentum in sports sponsorship

If you have been following the football world cup close enough then you are not new to this. Along with various popular brands, the football ground also portrayed ads for cryptos. The Singapore-based crypto entity crypto.com found a prominent place in the World Cup this year. 

Many crypto companies are using celebrities to endorse their product. This includes crypto exchanges bringing in popular faces for ads. Such advertisements tend to bring credibility to the platform thereby attracting investments. 

Crypto companies sponsoring an entire sports event is something new. It has been a business phenomenon followed by many companies in recent times. 

Is the sponsorship worth it in the current season?

Now, this might be an interesting question to ponder. The crypto market has been going through a massive price slash in the past year. While the markets opened to a profitable start, the year has not been favorable. Many popular tokens including Bitcoin, Ethereum, and others were under pressure. The price of Bitcoin came down to $20k per token. Ethereum also came down to $1k per token. The year 2022 was officially a crypto winter season. People lost a major part of their savings through this period. Did the crypto winter recover in 2023? Not yet, with January almost ending we are yet to see a favorable green trend for cryptos. 

Another factor to consider is the huge regulations that are taking shape. Considering the risk appetite, many countries are now looking at regulating cryptos. This would mean another round of reduction in crypto investments. 

Yet another cascading effect of the crypto crash is the massive lay-offs in the industry. Many popular crypto firms have been looking at opportunities to reduce costs. In the last year, we have also heard the news about crypto exchanges declaring bankruptcy. Investors lose their entire holdings without the right to claim back their funding. 

Other than football, crypto-based companies have also been sponsoring other sports events. Coinbase has signed a four-year massive deal with NBA and various other popular basketball teams. The deal was finalized for a whopping $190 million. This makes it the largest and most heavily funded sponsorship. Blockchain.com has become the exclusive digital asset partner for US national football league. The team's main player would make his appearance as part of the deal. His face would become his brand identity in television ads, signage, and other ad mediums. 

Why are crypto companies heavily investing in sports advertisements?

Sports have a massive reach amongst people. It crosses barriers and connects people across the globe.

This has been working in favor of crypto firms. Crypto brands have been able to leverage this interest to their advantage. Crypto firms can create awareness and likeness to their products. The industry is looking at opportunities to educate people about cryptocurrencies. The ability to reach out to large people is made possible through such sponsorship. Crypto brands also receive celebrity endorsements through this. 

There is no straight way to measure returns as it involves strategic planning. Crypto firms need to make additional efforts to ensure this works especially in the current market. 

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