Crypto Ads Disappear From Super Bowl

NEW YORK (AP) — How the mighty fell.

Cryptocurrency companies stole the show during the 2022 Super Bowl, with ads from a handful of newcomers to America’s biggest advertising scene: FTX, Coinbase, Crypto.com and eToro. Some marketers dubbed it the “Crypto Bowl”.

A year later, this sector was humbled by a massive drop in cryptocurrency prices, as well as the bankruptcy of several well-known companies.

The drastic twist is reminiscent of 2000, when dot-com companies such as Pets.com paid for Super Bowl ads, only to go bankrupt within a year or two.

This year, cryptocurrency companies are “not represented in any way,” said Mark Evans, executive vice president of advertising sales for Fox Sports.

Here’s a look at the cryptocurrency companies that announced at the Super Bowl last year and where they are now:

FTX: BANKRUPTCY

The cryptocurrency exchange was one of the biggest Super Bowl advertisers last year, with ads featuring comedian Larry David. Although FTX was the second or third largest exchange office at the time, it did not operate a large business in the United States.

Ten months after the Super Bowl, FTX was bankrupt. The Bahamas-based company collapsed after investors began withdrawing deposits due to concerns over its financial statements. FTX filed for government bankruptcy protection on November 11.

FTX Founder and CEO Sam Bankman-Fried has been arrested and charged with defrauding clients of billions of dollars. His trial will begin in October.

David, along with other celebrities such as star quarterback Tom Brady and basketball star Stephen Curry, have been named in a lawsuit alleging that being celebrities makes them guilty of promoting the model business failure.

CRYPTO.COM: HUMILIATED

Although Crypto.com is still in business, the company is significantly less healthy than it was a year ago.

The Singapore-based company announced in January that it was laying off 20% of its staff, in addition to layoffs implemented by the end of 2022. Crypto.com also revealed that a significant portion of its assets were tied to low-grade cryptocurrencies like Shiba.Inu coin.

Like FTX, Crypto.com tried to make a name for itself through sports sponsorship. The company spent $700 million on the naming rights to what was once Staples Center, where the Los Angeles Lakers play. It is now called Crypto.com Arena. The company’s Super Bowl ad featured basketball superstar LeBron James with the tagline, “Luck smiles on the brave.”

Crypto.com said their layoffs were due to a “confluence of negative economic developments”, but its CEO attributed a significant amount of blame to FTX’s downfall.

COINBASE: IN LEGAL PRECAUTIONS

Coinbase had one of the weirdest Super Bowl ads from last year, with a floating QR code that would lead users to a promotion in which the company was giving away millions of dollars worth of cryptocurrency. Marketing experts considered it one of the most successful commercials of the game, as it surprised people and stood out, although many viewers found it confusing.

Coinbase is publicly traded and its shares have fallen more than 70% since last year’s game. At a time when digital currencies like bitcoin are collapsing, society has seen exchange revenue dry up as investors shy away from buying cryptocurrencies in general.

The company also announced layoffs equivalent to about 20% of its workforce, and its CEO said they were preparing for what they call “a crypto winter.”

Additionally, Coinbase has caught the eye of US regulators. The company had to pay $100 million to settle a New York State investigation into whether it allowed users to open accounts without proper background checks. The Securities and Exchange Commission is also considering whether to ban an industry practice known as staking – a process in which cryptocurrency owners use cryptocurrency to update the blockchain. associate and are rewarded with additional coins, which had been a big deal for Coinbase in the past. .

ETORO: IS THE LACK OF NEWS GOOD NEWS?

The fourth cryptocurrency company to post a Super Bowl ad last year was eToro. The Israel-based company featured an ad promoting “social investing.”

Unlike FTX, Coinbase, and Crypto.com, eToro largely avoided negative news last year. The company has expanded its offerings beyond cryptocurrencies to allow users to purchase stocks and options, as well as non-fungible tokens (NFTs), which are unique, non-replicable crypto assets.