Coinbase is re-entering the sports sponsorship arena, becoming one of the first U.S.-based cryptocurrency exchanges to do so following the FTX fallout.
In October, the platform announced collaborations with several organizations, including the Canadian Football League, the Golden State Warriors of the NBA, and the Nike Melbourne Marathon Festival. This move comes after FTX’s partnership with the Warriors, which had included the launch of a non-fungible token (NFT) collection and Bitcoin donations to local charities before its collapse in November 2022.
According to Mike Kitts, the Warriors’ chief commercial officer, the aim of the Coinbase partnership is to enhance fan engagement through blockchain technology. Coinbase’s involvement extends to existing deals with the Women’s National Basketball Association, NBA, NBA G League, and NBA 2K League.
The Warriors deal indicates a growing acceptance of cryptocurrency sponsorships in sports, filling the gap left by FTX’s demise.
The negative publicity surrounding the 2022 crypto market crash led to many sponsorships being terminated, but other firms, like Crypto.com, are also stepping in. For instance, Crypto.com partnered with the UEFA Champions League in August, while Coinbase and blockchain firm BlockDAG have formed ties with Germany’s Borussia Dortmund.
FTX had previously established high-profile sponsorships with celebrities such as Shaquille O’Neal, Naomi Osaka, and Tom Brady, including a long-term agreement to rename the Miami Heat’s arena to FTX Arena. However, after FTX’s collapse, there have been attempts by its debtors to retract some sponsorship payments, as funds used for these deals were reportedly misappropriated from Alameda Research, a related firm.
Bitcoin-focused investment firm Strategy Inc. (formerly MicroStrategy) is facing mounting legal pressure as at least five law firms have filed class-action lawsuits over the company’s $6 billion in unrealized Bitcoin losses.
Digital banking platform SoFi Technologies is making a strong return to the cryptocurrency space, relaunching its crypto trading and blockchain services after stepping away from the sector in late 2023.
Digital assets are gaining ground in corporate finance strategies, as more publicly traded companies embrace cryptocurrencies for treasury diversification.
Ripple has been dealt another legal blow after a federal judge rejected its attempt to ease court-imposed restrictions and penalties stemming from its long-standing battle with the U.S. Securities and Exchange Commission (SEC).