Crypto.com has announced its efforts to expand brand sponsorship in sports markets. The company’s Chief Marketing Officer, Steven Kalifowitz, has confirmed this strategy, underscoring that it is a way of attracting crypto fans to the platform
Crypto.com’s F1 sponsorship and sports
Crypto.com’s use of sports sponsorship is demonstrated mainly through its strong reliance on Formula One (F1), among which the Crypto.com Miami Grand Prix serves the purpose of the title sponsor. Funding the event is not the only step that the organization took. The exchange backed this occasion for nearly a decade. The amount is reported to be over $10 million. As an additional benefit, they hold a mega-dollar sponsorship with F1 track globally for the next five years with an investment of $100 million in sponsorship value.
The determinant behind sponsoring sports businesses is an appreciation for its role in captivating an audience, which goes beyond the limitation of the cryptocurrency sphere. Crypto.com intends to become visible among a wide audience and attract new fans through back-to-back sponsorships with top sports events and sports teams.
Diversification beyond F1
F1 positions itself as the key aspect of Crypto.com’s sponsorship initiatives, but it keeps negotiating with other sports to acquire them. The collaborations with the National Basketball Association team, the Philadephia Sixers, the football team in Paris, the First Fighting League (UFC), and the Australian Football League (AFL) convey PFM’s intention to focus on various sports.
Sports advertising acts highlight the grey area crises in which cryptocurrencies are currently, with the shortage of government regulations and legality constraints. After the FTX failure, firms responded by seeking other methods for attracting customer attention and building brands than the conventional ones. The regulatory oversight is stiffer now.
Marketing position and user base growth
Crypto.com has succeeded in winning over a large user base of over 100 million, as indicated by the app’s number of users. The exchange’s specific partners in sports and properties have helped it become more visible and fan-friendly, which leads to the continuous income growth path.
While Crypto.com concentrates on marketing during this period, it is also pursuing the operational expansion phase. The company’s recent hiring plan involves expanding the workforce by as much as 1,400 employees in the initial months of 2023, but market fluctuations led to reduced revenue.
