Formula 1 sponsor Crypto.com collapses

Max Verstappen after winning the 2022 Crypto.com Miami Grand Prix.

Max Verstappen after winning the 2022 Crypto.com Miami Grand Prix.
Photo: CHANDAN KHANNA / AFP (Getty Images)

If you’ve watched a Formula 1 race this year, there’sChances are you have – if only unknowingly – seen many Crypto.com advertisements. Along with the likes of Aramco, DHL, Emirates and Heineken, Crypto.com appears to have become one of the key players in funding the future of open-wheel global motorsport. But right now, all that money could dry up.

A new report from Advertisemente‘s Asa Hiken describes a company that has embarked on a downward spiral. If you watched any Sporting Events In the recent past, you have probably seen an advertisement or event advertisement for Crypto.com, a cryptocurrency exchange platform. Now, it looks like thousands of employees are being laid off as the “crypto winter” descends.

Right after Crypto.com announced it had hit the 50 million user mark – and right after serving as the title sponsor for F1’s Miami Grand Prix – the crypto market crashed.

Of Ad age:

In the months that followed, Crypto.com quietly cut back on numerous partnership deals intended to bring mainstream attention to the brand, and in some cases the company has attempted to back out of those deals altogether, according to details shared by former and current company employees who spoke with Ad. Age on condition of anonymity.

The exchange also saw a reduction in its workforce on a scale not previously reported, with 30% to 40% of its pre-summer workforce leaving the company from June to August, the vast majority of which was due to layoffs, according to former and current employees. .

The lack of internal directories prevented Ad Age from confirming exact figures, as well as differentiating between layoffs and natural attrition, but multiple sources have independently reported that just over 2,000 employees have left the company since the layoffs began. Crypto.com previously reportedly laid off just over 1,000 employees at most. Marketing staff were among the first to be targeted for layoffs, including an entire in-house creative team that was eliminated just months after its inception, sources said.

In the article, an advertising professional who worked with Crypto.com described the company as follows: “I’ve worked with many ambitious clients before, but Crypto.com is probably the most ambitious client I’ve ever worked with.” This is because in less than a year, the brand rose to international prominence thanks to its intense marketing campaign which saw it grow into a massive business. It worked well to get the Crypto.com name out there.

But a slowdown in interest in crypto has brought the platform down. Crypto.com has dissolved agreements with Angel City FC, Twitch Rivals and the UEFA Champions League. It maintained several other agreements with sports teams or events, but in some cases reduced the number of hospitality packages available.

Right now, the future of Crypto.com and cryptocurrency as a whole is a bit hazy. It obviously did not become a universally adopted form of currency, and the initial appeal seems to have faded. It could continue to tumble, or it could see a further surge in interest. Formula 1 probably won’t collapse thanks to Crypto.com – but it’s yet another fascinating chapter in the sport’s long history of accepting sponsorship deals that aren’t quite cut to size.


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