According to information released earlier this week, the deal between Crypto.com and UEFA, worth £428 million over five seasons, fell through at the “last moment” amid concerns over increased regulation of cryptocurrencies.
The cryptocurrency exchange website has been set to replace Gazprom after UEFA cut links with the Russian energy supplier over the war in Ukraine. The main (and probably the most accurate) theory is that the concerns are related to possible legal restrictions on trade.
In recent years, digital assets have moved out of the fringes of the economy and into the mainstream, with more and more football sponsorship deals being confirmed. Both Chelsea and Atletico Madrid have signed a deal with trading platform WhaleFin and Manchester City have OKX as their training kit partner. It is also worth remembering that Watford already had Bitcoin as a sponsor of the club;
Last year, Spanish striker David Barral made football history when his move from Real Madrid to Madrid’s DUX International was paid for with Bitcoin. According to Uefa, the cryptocurrency industry has partly helped clubs fill in the revenue streams that have been lost as a result of the pandemic.
However, critics say there are concerns about the volatility of the cryptocurrency market, particularly given that the plummeting price of tokens could expose fans to potential debt.
Despite these lucrative sponsorship deals, Bitcoin is down nearly 70% from its November 2021 all-time high, Ethereum is down over 70%, and several cryptocurrency exchanges have laid off workers en masse. In June, Crypto.com cut nearly 5% of its workforce — about 260 employees — according to chief executive Kris Marszalek.
Crypto.com is the fastest growing crypto platform with over 10 million users worldwide. The site, which is globally headquartered in Singapore, also has sponsorship deals with Formula 1, the Ice Hockey World Championship and the 2022 FIFA World Cup in Qatar.
Source: BBC News.
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