Last year, BTC was at its peak, hitting record-setting prices. At the same time, major crypto companies invested heavily in marketing strategies, outreach and sponsorship ads.
Exchange Crypto.com, for example, partnered with Hollywood star Matt Damon to star in a branded commercial for the “Fortune Favors the Brave” campaign. Furthermore, it became the first cryptocurrency company to sponsor the Football World Cup.
Meanwhile, exchange FTX doled out BTC during a Super Bowl game and signed Larry David for a commercial for the NFL Championship Finals.
Similarly, Coinbase went public and exchange OKX (formerly OKEx) entered into a sponsorship deal with English football club Manchester City.
Crypto companies cuts ad costs
But the period has come to an end, at least for now. The general downturn in the crypto market has forced companies to make mass layoffs and significantly reduce investments in ads and sponsorships.
According to data provided by market intelligence and analytics firm Sensor Tower, cryptocurrency marketing has been on the rocks since November. In fact, these companies’ ad spend has dropped by as much as 90%.
The Gemini Trust, for example, spent less than $500,000 in the month of May on ads. By way of comparison, in November 2021 the digital asset company spent $3.8 million.
Also, after the recent cryptocurrency meltdown, Matt Damon was mocked because of his announcement last year. Last week, Twitter users claimed that those who followed Damon’s advice ended up losing most of their investment.
Larry David was also teased when his rep admitted that the “Curb Your Enthusiasm” star knew nothing about cryptocurrencies when filming the ad.
Other celebrities such as Kim Kardashian and Steph Curry have also been silent about the cryptocurrency crash after promoting digital assets.
In addition to cutting back on ads, Coinbase also laid off 1,100 employees – or 18% of its workforce. Likewise, Gemini, BlockFi, Crypto.com and even the Brazilian Mercado BTC announced staff cuts recently.
Binance in the opposite direction
However, one of the companies that didn’t “waste” during the bull market was Binance.
Recently, amid waves of layoffs, Binance CEO Changpeng Zhao, the CZ, said he believes the crypto winter is a great time to hire people.
At the Consensus 2022 conference, CZ stated that Binance is “in high gear in terms of M&A activity”.
“We have a very healthy treasury. In fact, we are expanding hiring now.”
According to CZ, Binance was cautious with its resources and stayed away from big promotional spending, unlike its main competitors.