Crash causes crypto companies to cut sports spending

Terra Luna
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The current bursting of the crypto bubble could be something more significant than a resetting of the Jenga pyramid. And that could be causing crypto companies to curtail their cash devoted to the games we play.

Via the New York Post, cryptocurrency companies are reducing their sports spending. For example, crypto exchange FTX recently has exited talks to fund a jersey patch for the L.A. Angels. An FTX deal with the Washington Wizards also fell through, per the report.

FTX has splurged on deals with the likes of Tom Brady. The company also dropped plenty of real dollars for a Super Bowl ad featuring Larry David.

As noted by the Post, other crypto companies that have spent many millions for sports sponsorships have recently undergone financial struggles. Crypto.com, which paid for the naming rights at the venue previously known as Staples Center and which gave the world the Matt Damon “fortune favors the brave” commercial, recently laid off 260 employees.

Also, Coinbase paid roughly $14 million for a one-minute Super Bowl ad, and it also became the NBA’s exclusive cryptocurrency platform partner. It has laid off nearly a fifth of its workforce, and its shares are down 75 percent this year.

Brady, whose 2.7-million follower Twitter feed has become nothing but an extended advertisement for the growing array of stuff he wants you to buy, last mentioned FTX on Twitter nearly three weeks ago, with an ad touting the ease of using the FTX trading platform.

Yes, it’s easy to use it. It’s also easy to lose money on it. Because way too many people think it’s easy to get rich on it.

Whatever label is applied, it’s not difficult to spot the grift. The more people who buy these currencies, the higher the price climbs. Then, when those who bought low begin to sell high, the price drops. More take their profits. More get nervous. And as they dump their holdings, the price drops, leaving those who got in at the peak holding the bag.

Then it starts all over again. People who understand the market will “buy the dip,” hopeful that the price will recover to the point at which they can sell the peak, inevitably sparking another dip from which they’ll buy. And so on. And so on.

Yes, someone is getting rich from crypto, starting with those who know when to buy and when to sell. And those who get in and get out too late are having their money end up in someone else’s pocket.

21 responses to “Crash causes crypto companies to cut sports spending

  1. There is more to the grift than just “Buy Low, Sell High.” It begins with how almost every brokerage operates, whether it’s a crypto brokerage or a “real” stock brokerage. They all take the deposit money from the investor, peg that money to the price of whatever you buy, then turn around and use that deposited money for whatever they want.

    The important part of this grift is they do not buy the assets that the investor bought through them. This is extremely risky and when investors decide to sell en masse during a downturn and the brokerage cannot fulfill the obligations, we end up seeing companies refusing to allow customers to cash out and completely ghosting them. New crypto companies are currently the most at risk brokerages to do this as they are not established yet, but stock brokerages also engage in the same practices and could do the same if faced with similar pressures.

  2. Tom Brady, Steph Curry, & LeBron James tell me that crypto is the future and I should put all my money there.
    So that’s what I’m gonna do.
    Anything else is just fake news.

  3. Bingo, another scam that people should stay away from. Sure there are those who got rich but most like in a pyramid scheme lose out in the end.

  4. Which is also how the actual stock market works. Just ask any politician. The only difference between the 2 is, one is gambling on actual businesses and products, and the other is pixie dust……

  5. Funny how people endorse crypto as “the future”, yet can’t adequately explain what the heck it is. Throw in high interest rates & $5 gasoline, and you witness a very quick crater in the price of it.

  6. What you just explained describes every investable asset available. Replace “Cryptocurrency” with “Gold” or “Stocks” and your point is exactly the same. You need to find other people willing to buy what you have at a higher price, that’s the market we live in.

  7. Everybody in my personal life who won’t shut up about Bitcoin never had any real money to begin with.

  8. Crypto currencies are the greates ponzi schemes in history.
    Inevitably they are all going to ZERO!

  9. Regulate Crypto, that would be a start. While you’re at it, the NFL should regulate what their players can endorse, advertise, peddle etc. Stick it in that code of conduct thingy, the NFL always enforce so heavily.

  10. Just in case anyone is wondering, now is the time to buy. Btc and eth are 1/3 their ath’s and doge is 10% of what it was 18 mos ago. The first two will definitely be back up, doge may be dead as it has no utility, but sure as I say that it could be 50 cents again in a month. Just don’t buy more than you can afford to lose…

  11. If crypto is such a great investment, why do these large crypto companies pay celebrities millions to try to get you to buy it instead of them buying it themselves?

    And where does all the money come from to run a company large enough that their layoff alone is 260 people?

  12. Classic Ponzi scheme. Those who got in on the ground floor make a killing when late arrivals drive the price up. Without a constant inflow of new investors/suckers, the price collapses. The trick is to know when to bail out. This is not like a stock investment where the company has property, knowledge and actual resources that are worth something. Cryptos are just a number on the board with nothing of value behind it.

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