It’s not outdated: no crypto ads at the Super Bowl after the crash and scandal

NEW YORK (AP) – How the mighty fell.

Cryptocurrency companies garnered attention during the 2022 Super Bowl, with ads ranging from a few newcomers to the biggest ad scene: FTX, Coinbase, Crypto.com and eToro. Some marketing experts have dubbed it the “Cryptoball”.

A year later, the industry was humiliated by a massive decline in cryptocurrency prices, as well as the bankruptcy of several well-known companies.

The sharp turn dates back to 2000, when internet companies like Pets.com ran ads for the Super Bowl but went out of business within a year or two.

Cryptocurrency companies have “zero representation” this year, said Mark Evans, executive vice president of ad sales for Fox Sports.

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

FTX: BANKRUPT

Cryptocurrency exchange FTX was one of the biggest advertisers of last year’s Super Bowl, featuring ads featuring celebrity comedian Larry David. Although FTX was the second or third largest crypto exchange in the world at the time, it did not have a major business in the US.

Within 10 months of the Super Bowl, FTX went bankrupt. The Bahamas-based company collapsed after investors began withdrawing their deposits amid concerns over the company’s balance sheet. The company filed for Chapter 11 bankruptcy protection on November 11.

FTX founder and CEO Sam Bankman-Fried has been arrested and charged with fraudulently swindling billions of dollars of customers. He is due to appear in court in October.

David, along with other celebrities such as football star Tom Brady and basketball star Stephen Curry, were named in a lawsuit alleging that their celebrity status made them guilty of promoting the firm’s failed business model.

CRYPTO.COM: DESTRUCTION

While Crypto.com is still in business, the company is significantly less healthy than a year earlier.

In January, a Singaporean company announced that it was laying off 20% of its workforce, in addition to layoffs implemented at the end of 2022. The company also disclosed that a significant portion of its assets were linked to low-quality cryptocurrency coins such as the Shiba Inu Coin.

Like FTX, Crypto.com has tried to make a name for itself through sports sponsorship. The company spent $700 million on the naming rights to the former Staples Center where the Los Angeles Lakers play. This is now the Crypto.com arena. The company’s 2022 Super Bowl ad featured basketball superstar LeBron James with the slogan “Fortune favors the brave.”

Crypto.com said its layoffs were due to “a confluence of negative economic events” but its CEO placed much of the blame on FTX’s collapse.

COINBASE: IN LEGAL HOT WATER

Coinbase had one of the weirdest ads in at least the yearly Super Bowl, featuring a floating QR code that redirected users to a promotion in which the company was giving away millions of dollars worth of cryptocurrencies. It was cited by marketing experts as one of the game’s most successful commercials, as it took people by surprise and stood out, although it was confusing to many viewers.

Shares of publicly traded Coinbase are down over 70% from last year’s play. With the fall of digital currencies such as bitcoin, the company found trading revenues drying up as investors avoided buying crypto altogether.

The company also announced it was laying off approximately 20% of its workforce, with the company’s CEO saying the company is gearing up for what they’re calling a “crypto winter.”

In addition, Coinbase has attracted the attention of US regulators. The company had to pay $100 million to settle a New York State investigation over whether it allowed users to sign up for accounts without proper background checks. The Securities and Exchange Commission is also looking into whether the cryptocurrency “staking” practice, which has been big business for Coinbase in the past, should be banned.

ETORO: NO NEWS – IS THIS GOOD NEWS?

The fourth crypto company to have a Super Bowl ad last year was eToro. The Israeli-based company launched a “social investment” ad.

Unlike FTX, Coinbase and Crypto.com, eToro has virtually avoided any negative news in the past year. The company has expanded its offerings beyond cryptocurrencies to allow users to buy stocks and options, as well as non-fungible tokens, better known as NFTs.