When the cryptocurrency market was booming, sponsoring a Formula One racing team became something of a status symbol for digital asset companies.
But as Bloomberg News reported Monday (Nov. 7), as the crypto market has slowed, so too have those high-profile, high-price sponsorships.
The report notes that roughly 80% of Formula One teams have partnered with at least one crypto company, while Crypto.com has a $100 million deal with the Formula One Group. However, as the crypto market declines, Bloomberg notes, companies have begun to display more hesitancy about shelling out for expensive partnerships.
Read more: Sports Sponsorships Still in Play for Crypto Firms
As PYMNTS has reported, cryptocurrency sports sponsorships have increased about 7,100% in the last four years, with the top four crypto sponsorship deals worth about $1.2 billion in total last year.
These sponsorships don’t just end with Formula One. As we noted earlier this year, the crypto industry spent more on Super Bowl ads — which can cost up to $7 million for a 30-second spot — this winter than airlines, quick-service restaurants, and wine and spirits companies.
Meanwhile, Crypto.com shelled out another $700 million to win the right to rename Los Angeles’ Staples Center after itself, while FTX made a 19-year deal for naming rights to the former American Airlines Arena, home to the Miami Heat.
However, as the sector began to plummet, some deals have gone south. Sponsored by Voyager Digital in a multi-year deal signed last year, the National Women’s Soccer League (NWSL) is now reportedly facing financial troubles following Voyager’s bankruptcy.
And Crypto.com recently stepped away from a five-year $495 million sponsorship deal with Europe’s elite soccer league, UEFA Champions League.
That’s not to say the market is going anywhere. A recent study determined the worldwide blockchain market is expected to reach $4 billion by 2026, fueled by more than 81 million cryptocurrency wallets and its many other functions.
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