Crypto firms are eyeing this sector to harness a new generation of investors, according to a study by Safe Trade Binary Options.
The financial information website revealed that crypto firms have used more than $3 billion in 2022 on global sports advertising to spark awareness among Generation Z and millennials, who are deemed lucrative and tech-savvy.
Saqib Iqbal, a Safe Trade Binary Options analyst, stated:
“For many years, non-crypto businesses such as Red Bull and Coca-Cola have targeted young people through their sports team affiliations. Crypto firms have observed this and are beginning to adopt a similar approach in order to broaden their appeal and bring in a new, more tech savvy generation of investors.”
Crypto firms have realized that sports businesses are a significant outlet for high-profile marketing collaborations, major sponsorship deals, and spending. Iqbal noted:
“The largest partnership so far is Crypto.com’s $700 million deal for the naming rights to the Los Angeles arena, which was formerly known as the Staples Center.”
The crypto sector’s spending on Super Bowl 2022 advertisements surpassed those of alcohol, airlines, quick-service restaurants, and wine firms combined, according to data by sponsorship consulting firm IEG.
For instance, crypto exchange Coinbase spent a whopping $14 million on a minute-long Super Bowl ad, but it raked in the dividends because traffic reached historic highs. The Coinbase app jumped to the second spot from the 186th position on the Apple store, Blockchain.News reported.
Iqbal pointed out:
“2022 has really been a turning point for Crypto marketing and we’re seeing many brands seriously ramping up their sports advertising.”
Meanwhile, Toto Wolff, Mercedes team principal, noted that cryptocurrencies were part of modern technology that could not be ignored, given that 80% of racing teams in the 2022 Formula 1 (F1) grid featured at least one crypto sponsor.
Crypto firms are eyeing this sector to harness a new generation of investors, according to a study by Safe Trade Binary Options.
The financial information website revealed that crypto firms have used more than $3 billion in 2022 on global sports advertising to spark awareness among Generation Z and millennials, who are deemed lucrative and tech-savvy.
Saqib Iqbal, a Safe Trade Binary Options analyst, stated:
“For many years, non-crypto businesses such as Red Bull and Coca-Cola have targeted young people through their sports team affiliations. Crypto firms have observed this and are beginning to adopt a similar approach in order to broaden their appeal and bring in a new, more tech savvy generation of investors.”
Crypto firms have realized that sports businesses are a significant outlet for high-profile marketing collaborations, major sponsorship deals, and spending. Iqbal noted:
“The largest partnership so far is Crypto.com’s $700 million deal for the naming rights to the Los Angeles arena, which was formerly known as the Staples Center.”
The crypto sector’s spending on Super Bowl 2022 advertisements surpassed those of alcohol, airlines, quick-service restaurants, and wine firms combined, according to data by sponsorship consulting firm IEG.
For instance, crypto exchange Coinbase spent a whopping $14 million on a minute-long Super Bowl ad, but it raked in the dividends because traffic reached historic highs. The Coinbase app jumped to the second spot from the 186th position on the Apple store, Blockchain.News reported.
Iqbal pointed out:
“2022 has really been a turning point for Crypto marketing and we’re seeing many brands seriously ramping up their sports advertising.”
Meanwhile, Toto Wolff, Mercedes team principal, noted that cryptocurrencies were part of modern technology that could not be ignored, given that 80% of racing teams in the 2022 Formula 1 (F1) grid featured at least one crypto sponsor.
Crypto firms are eyeing this sector to harness a new generation of investors, according to a study by Safe Trade Binary Options.
The financial information website revealed that crypto firms have used more than $3 billion in 2022 on global sports advertising to spark awareness among Generation Z and millennials, who are deemed lucrative and tech-savvy.
Saqib Iqbal, a Safe Trade Binary Options analyst, stated:
“For many years, non-crypto businesses such as Red Bull and Coca-Cola have targeted young people through their sports team affiliations. Crypto firms have observed this and are beginning to adopt a similar approach in order to broaden their appeal and bring in a new, more tech savvy generation of investors.”
Crypto firms have realized that sports businesses are a significant outlet for high-profile marketing collaborations, major sponsorship deals, and spending. Iqbal noted:
“The largest partnership so far is Crypto.com’s $700 million deal for the naming rights to the Los Angeles arena, which was formerly known as the Staples Center.”
The crypto sector’s spending on Super Bowl 2022 advertisements surpassed those of alcohol, airlines, quick-service restaurants, and wine firms combined, according to data by sponsorship consulting firm IEG.
For instance, crypto exchange Coinbase spent a whopping $14 million on a minute-long Super Bowl ad, but it raked in the dividends because traffic reached historic highs. The Coinbase app jumped to the second spot from the 186th position on the Apple store, Blockchain.News reported.
Iqbal pointed out:
“2022 has really been a turning point for Crypto marketing and we’re seeing many brands seriously ramping up their sports advertising.”
Meanwhile, Toto Wolff, Mercedes team principal, noted that cryptocurrencies were part of modern technology that could not be ignored, given that 80% of racing teams in the 2022 Formula 1 (F1) grid featured at least one crypto sponsor.
Cryptocurrencies and non-fungible tokens (NFTs) are emerging as some of the sought-after assets by households and sports fans on American soil, according to a poll by the Seton Hall University.
Per the report:
“While the concepts of cryptocurrency and NFT may still be foreign to many Americans, 24 percent of households in the U.S. have owned either or both.”
The demographics were even higher for avid sports fans at 57%, whereas the rest of the sports fans acknowledged owning these financial assets at 34%. The poll added:
“When asked specifically if their holdings were cryptocurrency and/or NFTs, survey participants indicated stronger engagement with crypto. Of those who hold and/or sold either, 62 percent specified crypto only, while 31 percent specified NFTs only. Seven percent said both.”
Those aged 18 to 34 years had a higher participation rate in crypto and NFT trading at 42%.
NFTs can become a game-changer in the sporting arena as an ideal source of revenue, according to Seton Hall Marketing Professor and Poll Methodologist Daniel Ladik.
He pointed out:
“If managed effectively, NFTs could become a major source of revenue as well as a new avenue of fan connection for sports brands. In a digital age, interactive assets like NFTs can drive a sense of holder equity and belonging – key attributes for brand success.”
The poll noted that sports fans got inclined toward NFTs based on some of the benefits accrued, like getting discounts when a team scored and upgrading a ticket.
Charles Grantham, the Director of the Center for Sport Management at Seton Hall’s Stillman School of Business, acknowledged:
“The numbers would seem to indicate that NFTs represent fertile ground for leagues to enhance the fan experience.”
Nevertheless, Grantham commented that more had to be done in the NFT space and said:
“But, perhaps because teams and leagues don’t fully understand the nature and potential of NFTs and perks like a digital VIP card, that ground has yet to be sown effectively by major sports organizations in the United States.”
Americans have shown their interest in the crypto space based on past research. For instance, Americans presented a stronger desire than Canadians for cryptocurrencies, accordingto a recent Ipsos survey.
Furthermore, a FitRated study showed that 81% of Americans would be motivated to exercise if they got crypto rewards, Blockchain.News reported.
The National Basketball Association (NBA), a professional basketball league in the United States, will mint 18,000 dynamic non-fungible tokens (NFTs) on the Ethereum network for each player taking part in this year’s playoffs.
The NFT collection dubbed The Association will involve 240 players and 16 teams, each player being allocated 75 NFTs.
The NBA playoffs is the main postseason tournament held to determine the league’s champion. Therefore, this year’s edition will be commemorated using NFTs, given that they will have the capability of changing appearance based on a player’s on-court performance.
Per the announcement:
“The Association NFTs are connected to live data feeds and computations for each respective team and player via Chainlink Oracle. This allows each player’s NFT appearance to change in an automated manner based upon the pre-set achievements that are written into the Galaxis smart contract.”
Furthermore, participants will have an equal opportunity to mint any player because the NFTs will be assigned transparently and randomly using Chainlink VRF. The report noted:
“The Association NFTs are being issued in a blind-mint, meaning that nobody will know which 2022 NBA Playoffs player they will receive prior to the reveal on April 22nd.”
The rollout of these digital assets coincides with the release of an NFT collection by the Golden State Warriors, one of the playoff teams.
The 2022 Playoff NFT Collection by Golden State Warriors has 2,000 limited NFTs minted on the Solana network using crypto exchange FTX.
NFTs are touted as game-changers that are revolutionising different sectors. For instance, the Dubai Police recently rolled out a set of NFTs comprising 150 free digital assets as part of a campaign to showcase security, innovation, and communication values.
Therefore, the Dubai Police became the first government entity in the United Arab Emirates (UAE) to develop digital assets to enhance policing.
To render its fans a new experience through non-fungible token (NFT) trading cards, World Wrestling Entertainment (WWE) has signed a deal with the digital sports platform Fanatics.
As an American integrated media and entertainment company known for professional wrestling, WWE sees the partnership as a game-changer that will give its global fanbase more opportunities to showcase their pride and passion for its star-studded roster and marquee events.
Vince McMahon, WWE chairman and CEO, welcomed the collaboration and stated:
“We believe this multi-platform partnership will set a new standard for WWE e-commerce, apparel and merchandise, while providing our fans globally with more ways than ever to engage with WWE and our Superstars.”
For elevated fan experience, WWE will be able to access Fanatics Collectibles, Fanatics Commerce, and Candy Digital.
Fanatics Collectibles, the NFT trading cards, will help revamp WWE’s physical and digital cards.
Michael Rubin, Fanatics CEO, noted:
“From e-commerce and licensed merchandise to trading cards and more, we’re going to offer up an incredible set of capabilities to help WWE’s passionate fans worldwide celebrate their favorite Superstars, marquee events and the WWE brand overall.”
WWE is one of the most widely admired sports and entertainment properties worldwide. Rubin added that it made perfect sense to activate many parts of our Fanatics global platform to create a first-of-its-kind, all-in fan experience.
The organisation has shown its preference for non-fungible tokens, given that it launched John Cena-inspired NFTs just in time for SummerSlam in August 2021.
Meanwhile, a recent PricewaterhouseCoopers (PwC) report acknowledged that NFTs would be at the epicentre of the future of sports as they would revolutionise the way fans consume and interact in the sporting arena.
As non-fungible tokens (NFTs) continue taking the world by storm, big-four accounting firm PricewaterhouseCoopers (PwC) report shows that they will revolutionize the way fans interact and consume in the sporting arena.
Dubbed “Sports Industry Outlook 2022,” PwC suggested that NFTs were among the top ten hottest trends in the sports industry because they have the capability of shaping fan experience and boosting bottom lines.
From a list of three main NFT use cases, PwC noted that these digital assets could revamp seasonal ticket membership. Per the report:
“Many teams have started to consider how tickets could become digital tokens, providing ticket holders — especially season ticket members — with access to special content in the real world or around the stadium experience.”
Collectible NFTs have the potential of driving up revenue in the sporting industry because they will serve as trading cards for the digital world. Individual athletes, teams or leagues will typically license them.
By merging the metaverse with digital assets, both fungible and non-fungible tokens, PwC believes that a whole new market will be born needed to maximize fans’ satisfaction levels. Therefore, virtual access tokens will foster innovative opportunities and social experiences in the metaverse.
NFTs are deemed game-changers in different sectors, given that they are non-divisible and have to be sold as a whole. For instance, Amrit Dhami, a thematic analyst at GlobalData, recently noted that NFTs were perfect for fashion in the metaverse.
Given that NFTs reflect proof of ownership of an asset like an image, Dhami stipulated that these creations can change the fashion look in the metaverse because users will be offered the chance to buy ‘NFT clothing’ just like the way people purchase custom-made outfits.
Terra Labs has partnered with the MLB team the Washington Nationals in a $38 million sponsorship deal.
The pro baseball team’s stadium will add Terra to its branding and accept Terra’s UST stablecoin as payment.
Though FTX and Crypto.com have formed similar sports partnerships, Terra claims to be the first DAO to do so.
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Terra, the project behind the top-ten cryptocurrency LUNA, has partnered with the MLB team the Washington Nationals.
Partnership Will Focus On Branding, Payments
According to an announcement published today, the partnership includes several elements including branding and payments.
The Nationals will accept Terra’s UST stablecoin as a form of payment at Nationals Park, the team’s home stadium in Washington, D.C. Support for crypto payments could begin next season.
The deal will also see The Nationals Club—the indoor dining space behind home plate—renamed the Terra Club. Terra will also be featured on stadium signage and will sponsor a digital online series.
Terra Labs founder Do Kwon noted that the partnership is an opportunity to “encourage and educate the public, including policymakers” about cryptocurrency and decentralized money.
Terra Is the First DAO to Sponsor a Team
Kwon added that this partnership is the first deal between a sports team and a decentralized autonomous organization (DAO). Terra operates a DAO that holds approximately $2.7 billion of funds and lets token holders determine the use of those funds.
Earlier announcements on Jan. 31 revealed that the DAO would spend $38.15 million on the then-unnamed sponsorship. Terra’s communications head confirmed the value of the deal today.
Other cryptocurrency companies such as Crypto.com and FTX have also formed extensive sports partnerships, and both companies are expected to run Super Bowl ads this upcoming weekend. Unlike Terra, those companies are centralized exchanges rather than community-led projects developing a blockchain and cryptocurrency.
Still, sponsorships akin to today’s Terra deal are not unheard of. The Litecoin Foundation sponsored a UFC match in 2018, while the Dogecoin community sponsored a U.K. soccer team in 2021.
Disclaimer: At the time of writing this author held less than $100 of Bitcoin, Ethereum, and altcoins.
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NBA superstar LeBron James is teaming up with the Crypto.com exchange to promote the development of Web 3.0 through education.
In a new blog post, Crypto.com says it’s partnering with the LeBron James Family Foundation (LJFF) to provide education and access to participants of the non-profit organization’s I Promise program.
James says that he wants to ensure people from disadvantaged backgrounds are not left behind as new technologies transform the world at a rapid pace.
“Blockchain technology is revolutionizing our economy, sports and entertainment, the art world, and how we engage with one another. I want to ensure that communities like the one I come from are not left behind.
Crypto.com and I are aligned on the need to educate and support my community with the information and tools they need for inclusion.”
The I Promise program assists public school students and their families in James’s hometown of Akron, Ohio.
Singapore-based Crypto.com says of the initiative,
“Web3 promises to deliver a more fair and equitable internet, owned by the builders, creators and users. That promise can only be realized through the active engagement of diverse participants.
Through this partnership, I Promise students and families will get a strong foundation in Web3 and the innovations behind blockchain-based decentralized applications powering the future of many sectors from finance to media to art.”
The partnership with the four-time NBA champion is the latest in a series of major deals Crypto.com has secured with professional sports franchises worldwide in recent months.
Back in November, the iconic Staples Center where James plays for the Los Angeles Lakers was renamed Crypto.com Arena.
Other sponsorships with popular franchises include Formula 1 Racing, the UFC, the NHL’s Montreal Canadiens, and two European soccer teams.
Crypto.com Coin (CRO), the native token of the digital asset marketplace, is currently up 2.4% on the day and trading for $0.41.
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Though the crypto space has seemingly moved beyond the endorsements many minor celebrities bestowed on token projects during the 2018 initial coin offering boom, its growing popularity and acceptance now has professional sports players, Hollywood elites and politicians backing major companies dealing with digital assets.
In June 2021, Kim Kardashian promoted EthereumMax (EMAX) via an Instagram story shared with her more than 200 million followers. The token, which was used as payment for online ticket purchases for some pay-per-view events, gained 116,000% in just one week following the celebrity’s activity before falling more than 99% and leaving many investors in the red.
Kim Kardashian promoting EthereumMax on Instagram Stories, June 2021. Source: Instagram
Though EthereumMax is somewhat of a cautionary tale for crypto newbies looking to get involved in the space, it also represents one of the select times a major international figure outside of finance and politics not only spoke about digital assets but actively promoted a specific project for a fee — the story was labeled as an ad. Kardashian, recognized by many as an A-list celebrity, rose to fame largely outside of Hollywood circles, so her seeming stamp of approval on a token project was a surprise to many.
Others in film and television entered the crypto space for the first time in 2021 following months of time spent mostly indoors during the worst waves of the COVID-19 pandemic. Mila Kunis, an actress famous for her roles in That ’70s Show and Family Guy, launched an animated nonfungible token (NFT) project based on cats who drink alcohol and smoke marijuana. However, the biggest endorsement of a crypto firm last year arguably came from film star Matt Damon, who appeared in a global ad spot for Crypto.com.
Sports franchises also branched into crypto, either through official partnerships with exchanges or with individual players promoting certain campaigns or companies. Tom Brady, quarterback for the Tampa Bay Buccaneers and a seven-time Super Bowl champion, took an equity stake in crypto exchange FTX and is currently acting as an ambassador for the firm following an endorsement deal in June. His wife, Brazilian supermodel Gisele Bündchen, accepted a role as the exchange’s environmental and social initiatives adviser.
“This particular opportunity showed us the importance of educating people about the power of crypto while simultaneously giving back to our communities and planet,” said Brady at the time.
Cash App, a digital payments app developed by Block (formally known as Square), has also formed partnerships with NFL players, allowing them to receive their salaries in Bitcoin (BTC), amounting to millions of dollars. Odell Beckham Jr., wide receiver for the Los Angeles Rams, announced in November that he would be taking his $4.25-million salary in crypto. The professional athlete currently has a CryptoPunk-style image as his Twitter profile picture. Cash App offered a similar deal to Green Bay Packers quarterback Aaron Rodgers, who later found a place in the national spotlight after deceiving the public about his COVID-19 vaccination status.
With the exception of Kardashian, celebrities jumping into the space in 2021, compared with those who followed the 2017 bull run, seem to be partnering with more established firms and projects with enough exposure to shake off any potential “scam” label. It’s unclear whether this can be attributed to the space seemingly gaining more acceptance across the world or to companies growing to the point where they have the financial means and influence to hire more prominent public figures.
NFTs saw their share of celebrities last year, as well. In March, Canadian musician Grimes — sometimes associated with Tesla CEO and Dogecoin (DOGE) proponent Elon Musk — sold roughly $6 million worth of NFTs encompassing artwork and audio-visual animations. In December, NBA star Kevin Durant and sports manager Rich Kleiman announced that their venture capital firm, Thirty Five Ventures, would be partnering with crypto exchange Coinbase to create NFT drops. Musical artists such as Katy Perry, Kings of Leon, Snoop Dogg, Eminem, Jay-Z, Shakira and others also launched similar initiatives in the NFT space last year.
The trend of celebrities endorsing crypto is not without its detractors, however. Ben McKenzie, known for his roles on TV shows such as Gotham and The O.C., partnered with New Republic staff writer Jacob Silverman to call out actors and influencers for promoting the “illusory” rewards of cryptocurrencies. The pair have criticized Kardashian and others for seemingly labeling crypto projects as “a path to sustainable riches” without informing fans of the potential risks.
Thank you @CNN for covering this story. There is an enormous amount of fraud in the crypto markets. Jacob and I will write about it at length. Please be smart folks, only gamble with what you can afford to lose. https://t.co/Q6muDzT4LS
— Ben McKenzie (@ben_mckenzie) November 30, 2021
“Whether it’s Lindsay Lohan peddling five-figure NFTs, laser-eyed Tom Brady endorsing the exchange FTX, or Akon promising to build a $6 billion, crypto-inspired city in Senegal, there’s a lot of capital swirling around this industry, and much cause for worry,” said McKenzie and Silverman in November. “Celebrities are encouraging their fans to gamble on speculative, unproven investments that may soon see a major regulatory crackdown, if not an outright implosion of the market.”
Whether celebrity attention will help on the road to mass adoption remains to be seen. For the moment, associations between respected public figures and established crypto firms show many promising signs, from increasingly positive social media chatter to some correlations with price movements, often an indication of large buys and sells.
