Crypto firms have struggled following bankruptcy of FTX exchange
Cryptocurrency firms are set to stay on the sidelines of this year’s Super Bowl one year after they dominated the big game’s ad space as the industry looks to rebound in the wake of the FTX collapse.
Super Bowl ads are some of the most expensive airtime on TV, costing as much as $7 million for a 30-second commercial. Last year’s Super Bowl saw several of the crypto sector’s largest firms run ads during the game, which prompted some marketing experts to dub it the “Crypto Bowl.”
This year’s Super Bowl will serve as a stark contrast as crypto companies have “zero representation,” according to Mark Evans, the executive vice president of ad sales for Fox Sports. The turnaround is somewhat reminiscent of the 2000 Super Bowl, when several dot-com companies ran ads but went broke within a year or two of appearing in the national spotlight.
Crypto exchange FTX was one of the biggest advertisers in last year’s Super Bowl and ran an ad with celebrity comedian Larry David of HBO’s “Curb Your Enthusiasm.”
FTX’s Super Bowl commercial featured David portraying characters skeptical of a series of inventions, from the wheel and indoor toilets to the light bulb and the Walkman.
It touted FTX as a “safe and easy way to get into crypto” and told viewers, “Don’t be like Larry, don’t miss out on crypto, NFTs, on the next big thing.” David’s character concluded, “Eh, I don’t think so, and I’m never wrong about this stuff, never.”
In November, FTX went into bankruptcy and wiped out billions of dollars worth of investors’ money. FTX founder Sam Bankman-Fried is facing several federal charges related to defrauding investors that could land him in prison for decades. His trial is tentatively scheduled to begin sometime this year.
David and several other celebrity endorsers of FTX, including sports stars Tom Brady and Steph Curry, have been named in a lawsuit that alleges their status made them culpable of promoting the firm’s failed business model.
Another firm that ran a high-profile ad during last year’s Super Bowl, Crypto.com, announced in January that it would lay off 20% of its workforce on top of other cuts announced near the end of 2022. The company’s CEO blamed a “confluence of negative economic developments” and cited the impact of FTX’s collapse on the crypto space as a significant factor.
A year ago, Crypto.com ran a Super Bowl ad featuring basketball star LeBron James talking to his 18-year-old self in 2003 about technological advancements in the decades ahead. While he didn’t discuss crypto, the Crypto.com logo and its marketing slogan “Fortune favors the brave” appeared at the end.
Actor Matt Damon had previously appeared in a Crypto.com ad with the “fortune favors the brave” slogan, which was later used by the satirical TV show “South Park” to lampoon the movie star and other celebrity endorsers of crypto firms.
Coinbase ran an ad during last year’s Super Bowl that featured a floating QR code for a promotion in which the company was giving away millions of dollars. Marketing experts named it one of the game’s most successful ads as it took viewers by surprise and stood out, although many viewers found it confusing.
Over the past year, Coinbase’s shares have tumbled by more than 70% and the company had to laid off about 20% of its workforce amid “a crypto winter.” The company also finds itself under the regulatory microscope as a result of a recent $100 million settlement with New York State into the insufficient vetting of users setting up accounts and an ongoing Securities and Exchange Commission probe into the crypto practice of “staking.”