Why are Crypto.com investing in sponsorship?
Having announced deals with the UFC and Formula 1 in the past two weeks, today’s newsletter looks at why the world of sports is so attractive for the popular cryptocurrency exchange.
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A week after announcing a blockbuster deal with Formula 1, Crypto.com was at it again, signing a historic deal with the UFC, estimated to be worth $175m over the next 10 years. However, it would seem more announcements could be imminent, as CMO Steve Kalifowitz stated the brand was “still just getting started”.
This sentiment was also echoed by co-founder and CEO, Kris Marszalek, who joined Cheddar News to discuss why the world of sports is so attractive for the cryptocurrency exchange.
For Marszalek, the investment in sports sponsorship is all about brand awareness. “Our mission as a company is ‘taking cryptocurrency mainstream’ and there is no better way to make sure you’re in front of billions of people than going through sport.”
For example, the UFC and Formula 1 have around 625 and 400 million fans, respectively. This gives Crypto.com brand visibility to 1 billion fans. While Marszalek likely needs to account for a greater audience overlap, this is still huge, especially given that the entire cryptocurrency industry today has only 150m users!
In his interview, he did also note that “some of these sports have a very natural overlap between the cryptocurrency core user base and the fans of the sport.”
This is well evidenced through the activation of many of their primary sponsorship deals, such as with Aston Martin Cognizant F1, where NFTs were launched exclusively on the Crypto.com NFT platform. As such, sponsorship provides a unique opportunity to not only serve the core user base, but also engage with them more directly.
It's a model we could expect other cryptocurrency exchanges to follow, especially as they launch their own NFT platforms, too.