Binance is losing market share to FTX Crypto.com and Coinbase due to Sports Marketing
It’s getting harder to find a professional sports league or team that doesn’t have at least a few crypto sponsors.
This Tuesday (16), Crypto.com announced that it had acquired the naming rights to the Los Angeles arena, formerly known as the Staples Center, in a 20-year contract worth $700 million.
This caused the Crypto.com Coin (CRO) to go up 14% this Wednesday (17).
The Singapore brokerage also has an agreement that adds its logo to the Philadelphia 76ers team equipments for the next six years.
The company also signed a $100 million deal with Formula 1, guaranteeing, for five years, the presence of the company’s brand at F1 events and a partnership for non-fungible tokens (NFTs).
It will also pay $175 million over the next five years to the Ultimate Fighting Championship (UFC) in a sponsorship deal.
- China arrests senior Communist Party official for supporting bitcoin mining
- Michael Saylor recommends Elon Musk to sell part of his Tesla shares and invest in Bitcoin
- AMC already has 14% of online purchases made with cryptocurrencies
Crypto.com is not alone. FTX and Coinbase are busy with their own marketing deals. An analysis made by Decrypt of brokerage data on the CoinGecko website shows that the crypto sponsorship craze may be paying off.
CoinGecko ranks brokers using a “trust score” that is partially based on broker volume, but also includes liquidity, cybersecurity and scale.
Binance, the world’s largest cryptocurrency broker in terms of trading volume, has begun to lose ground as the long-dominant broker, according to the data.
At one point in the last 30 days, it totaled 58% of the volume among the top five brokers (Binance, Coinbase, Huobi, Crypto.com and FTX). However, currently Binance has dropped to 45% while Coinbase, Crypto.com and FTX gained volume.
This does not prove that the increase in brokerage volumes was caused by all the sports deals. Still, the gains probably haven’t gone unnoticed by the people who are writing the checks for all these deals.