Despite the challenges facing cryptocurrencies, it appears that more brands are warming up to the industry as they seek new ways to earn money. In the US where cryptocurrency interest is high, a sports center has sold its naming rights to a top cryptocurrency exchange, Crypto.com. The rights are worth $700M and will be on for the next two decades.
Los Angeles, New York is popular for being a city with a special devotion to sports and entertainment. Basketball, soccer, and baseball are some of the sports that thrive in LA and some of the biggest names in Basketball have their home base in LA city.
The sports center where four basketball teams are based in LA, Staples Center, will now get a new name after the current naming contract expires in a few days. The name will be given by a top crypto company that is behind the purchase. The deal benefits both parties as the center gets enough funding while the crypto company receives increased visibility and the other perks of being a sponsor.
Deals for Crypto Brands Are Increasing
The crypto industry has seen an increase in the number of deals and partnerships with sports, arts, and entertainment companies in recent years. The growing list of collaborations reflects the interest in cryptocurrencies as well as the trust that is being built between brands in both industries.
Kris Marszalek, a co-founder of Crypto.com, stated that his company was eager to collaborate with the sports facility in order to strengthen the relationship between crypto companies and other industries. But while some experts believe that companies are only turning to crypto investments because they want to recover from the COVID-19 pandemic that crippled profits, many others believe that more brands are beginning to realize the immense benefits of cryptos.
In August, Dogecoin became the official shirt sleeve sponsor of English football club, Watford. Dogecoin joined BitGet which sponsors the shirt sleeve of the Italian club, Juventus. XBTO sponsors Inter Miami’s shirt, while Binance sponsors Lazio’s shirt.
Global Crypto Adoption
Cryptocurrency adoption continues to thrive despite internal and external challenges. The major internal challenges are security, speed, and high network transaction fees. Although crypto companies are developing new technologies to overcome internal challenges, the industry continues to grapple with government restrictions, bans, and unfavorable policies.
Thankfully, there is no restriction on sports teams getting sponsorship from crypto companies in the US. Although the US government is making moves to make the crypto space safer and better, it has not adopted a tough stance against cryptocurrencies the way China and some other countries have.
As more brands come to embrace the blockchain-powered financial system, the crypto industry will reach its true potential in a world where it becomes increasingly relevant. NFTs and the Metaverse are gradually changing the face of entertainment and in the nearest future, more crypto partnerships will be concluded. NFTs have taken the sports and entertainment industry by storm and more sports businesses are jumping on the NFT train.