Crypto.com has announced plans to expand its brand sponsorship in the sports market. Steven Kalifowitz, the company’s Chief Marketing Officer, confirmed this strategy, emphasizing its aim to attract crypto enthusiasts to the platform.
The use of sports sponsorship by Crypto.com is exemplified primarily through its significant involvement in Formula One (F1), with the Crypto.com Miami Grand Prix serving as a notable example of its title sponsorship.
However, funding the event is just one facet of the organization’s efforts. Initially, the exchange supported this event for nearly a decade, reportedly investing over $10 million. Additionally, Crypto.com has secured a major sponsorship deal with F1 tracks worldwide for the next five years, with an investment of $100 million in sponsorship value.
The rationale behind sponsoring sports ventures is the recognition of their ability to capture an audience beyond the cryptocurrency sphere. Crypto.com aims to increase its visibility among a broader audience and attract new fans through partnerships with top sports events and teams.
While F1 is central to Crypto.com’s sponsorship initiatives, the company is actively negotiating with other sports entities for partnerships.
Collaborations with teams such as the Philadelphia Sixers in the NBA, the Paris football team, the Ultimate Fighting Championship (UFC), and the Australian Football League (AFL) demonstrate Crypto.com’s intention to diversify its sports sponsorships.
Sports advertising also addresses the challenges facing cryptocurrencies, such as regulatory uncertainties and legal constraints. Following the issues encountered by FTX, companies are exploring alternative methods to attract customers and build brands amidst stricter regulatory oversight.
Crypto.com has successfully amassed a large user base of over 100 million, as indicated by its app’s user count. Partnering with specific sports entities has contributed to its increased visibility and popularity among fans, resulting in continuous revenue growth.
While Crypto.com focuses on marketing initiatives, it is also in the midst of an operational expansion phase. The company’s recent hiring spree, aiming to increase its workforce by up to 1,400 employees in the initial months of 2023, reflects its commitment to growth despite market fluctuations leading to reduced revenue.
